2022 was rough for the cryptocurrency market. The market plummeted from an all-time high of $830 million to $100 billion.
Spencer Bogart, the Blockchain Capital Executive, explained that in a simple way – the market went up a bit too much.
Given that the infrastructure wasn’t ready to support such immense growth, the 87% fall was inevitable.
What can we expect from the crypto market in 2023? What are the cryptocurrencies that will dominate it? What ups and downs will we face?
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Let’s find out!
The Hottest Cryptocurrencies to Invest in
Finding a reliable cryptocurrency is not easy. If you look at the CoinMarketCap list, you will see that there are 2154 cryptocurrency options to choose from.
Here are some additional cryptocurrencies that are currently standing out on CMC.
XRP is one of the cryptocurrencies with the highest potential. The stats back me up on that. Namely, XRP is currently in the second spot on CoinMarketCap, with a $13,625,599,873 market cap.
Ripple has also become the go-to choice for over 200 financial institutions, including Euro Exim Bank, GMT, and Olympia Trust Company. Its XRP can be used as an on-demand intermediary for cross-border transactions. For example, if you’re making a payment in Swill Franc and you need to send the payment to the U.S., Ripple’s blockchain can make the transaction quicker. It will convert Franc into XRP and then XRP into U.S. dollars.
Right now, the price of the coin is $0.32. Given that the number of banks using xRapid is growing, this may soon lead to a substantial price rise.
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Anchor AG is relatively new in the cryptocurrency sphere. It is modeled as a two-token system. First, it consists of the Anchor Coin – its currency and payment token. Second, it has the Dock Token, the utility token that ensures the system’s stability.
The reason why Anchor is believed to dominate the 2023 cryptocurrency market lies in the fact that it is focused on stabilizing the value of any currency, preserving monetary value in the long run, and lowering the volatility of a currency.
Anchor has also introduced a proprietary numerical index, the Monetary Measurement Unit. The MMU is based on international financial indicators and it serves as a reliable value peg for numerous currencies.
Namely, this Swiss-based company came up with an awesome decentralized exchange back in 2017. Apart from letting users conduct cheap and quick transactions, Waves also has amazing Smart Assets tokens that can limit trading to pre-approved pairs of assets.
It is especially important to mention that Waves has seen impressive growth in 2018, even though the entire market was experiencing new annual lows. It is currently ranked 29th and has a market cap of $264,710,724. One of the main reasons for this startup’s growth is its Tokenomica, a security tokens issuance platform.
IOTA enables free machine-to-machine transactions, which is, in fact, one of the major focuses of the Internet of Things. One of the major benefits of IOTA lies in the fact that, instead of the blockchain, it is based on a directed acyclic graph (DAG) called the Tangle. Even though these both DAG and the blockchain are distributed ledger (DLT) technologies, DAG still provides greater scaling opportunities. Right now, IOTA is in the 15th spot on CMC and the value of its MIOTA is at $0.30.
Binance Coin (BNB)
Binance coin has grown significantly over the past years, making it the top leading currency by market capitalization. It is currently in the 7th spot on the CMC list, with a $2,768,376,456 market cap. The price of its BNB is also high – $19.61.
You can conclude from its name that Binance Coin is the native coin of Binance, the world’s leading exchange. Binance provides investors with multiple benefits. Apart from the growth in trading volume, the transaction fees on Binance that are paid in BNB also receive a massive discount of up to 50%.
In 2023, Binance focuses on fiat-to-crypto transactions, aiming to decentralize the cryptocurrency market. They will soon launch Binance DEX, their decentralized exchange, which will be available for public testing. It will be available on multiple operating systems, including Android, Windows, Mac OS, iOS, and Linux.
The price of Stellar’s XLM is only $0.11, but it is still a good choice if you’re looking for affordable cryptocurrencies to invest in. In terms of its market cap, Stellar is currently on the 9th sport on the CMC list, with a $2,227,704,690 market cap.
Similar to Ethereum, the XLM blockchain is what keeps it competitive in the cryptocurrency market. Stellar is a highly popular choice among large enterprises. So far, they teamed with popular industry names like KlickEx and IBM. Many financial institutions also use Stellar’s blockchain in order to simplify crypto payments they get from IBM’s customers.
The Major 2023 Crypto Trends
Now that you know what cryptocurrencies to invest in, you need to familiarize yourself with a few key trends that will dominate the crypto market in 2023 and beyond.
More Institutional Investors
Institutional investors are still afraid of losing their profits by investing in the crypto market. Still, we should be optimistic. There are many large organizations that have entered the market, including Fidelity which has over 25 million customers. Given that there are only 5 million active bitcoin wallets, you can imagine how such large companies with millions of customers can contribute to the growth of the crypto market.
Low Price Volatility
In 2017, Bitcoin experienced high price volatility when its price dropped and then grew again. Logically, these are great changes that impacted the entire market. 2018 was different a bit. The coin price volatility was subtle and cryptocurrencies stabilized. This trend is expected to continue in 2023. Investors will experience only low volatility, meaning that their investments will be safer.
The Growth of Stablecoins
Stablecoins have great potential, given that they are exchanged at a stable rate. These coins are not digital currencies themselves. On the contrary, they bridge the gaps between cryptocurrencies and fiat currencies, reduce price fluctuations, and make the process of getting a cryptocurrency loan safer and faster.
The Rise of Security Token Offerings
Initial Coin Offerings (ICOs) has been one of the most effective fundraising methods for startups. Unfortunately, most of these young companies will probably fail because no one will use their tokens.
Another major problem related to ICOs is security, as they don’t comply with the Security and Exchange Commission’s regulatory framework. These are just some of the numerous factors that lead to the popularity of Security Token Offerings (STOs) that are focused on reducing fraud and maximizing investor protection.
The crypto market is changing at an astonishing rate. To stay on top of it, you should keep pace with its major trends continuously. This is the only way to make wiser and safer investments.
Even though this is not an exhaustive list of cryptocurrencies and trends to keep in mind, I hope it will serve as a useful starting point for your further research.