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What Will the Blockchain Market Look Like in 2023?

blockchain market 2023

Experts predict that Web3 will be a factor to help develop blockchain games, NFTs, DAOs, and even help end the crypto winter.

2022 is considered a challenging year in the blockchain field, when a series of leading projects like Luna or FTX collapse. However, experts say that traditional companies that adopt Web3 can help end the “winter” earlier, while blockchain games will promote cryptocurrency popularity.

There is optimism

“In 2022, I have seen a number of Web2 companies accept payments in cryptocurrencies, as well as integrate an innovative form of blockchain like NFT into the service. This trend will continue, as more people become aware of blockchain,” Alex Onufriychuk, leader of Corite, a blockchain-based music crowdfunding platform, told Forkast.

According to Onufriychuk, the key to the “crypto summer” – the period of recovery and acceleration of cryptocurrencies – is the mass adoption of Web3 applications by traditional Web2 companies. “As this transition accelerates, interface design and intuitive experiences will come into focus, serving more users,” he predicts.

Slava Demchuk, CEO of blockchain company AMLBot, thinks that decentralized finance (DeFi) will have practical applications for traditional banking. “Integrating DeFi protocols into the back end of the traditional banking system is necessary to provide customers with a more attractive and reliable alternative to current financial services,” said Demchuk. .

Meanwhile, Yat Siu, Co-Founder and President of Animoca Brands, predicts gaming will be the factor that will help expand blockchain culture this year, mainly through NFTs. The world of 2023 and early 2024 will see a wave of high-quality blockchain games hit the market, adopted by millions. This makes blockchain widely accepted.

According to Randy Wasinger, founder and CEO of data aggregator NFT CryptoSlam, the game development platform will not be Ethereum, but rather Polygon or another more powerful blockchain. The game will attract Asian users first, then Africa, Europe, and South America.

As for Gary Liu, founder and CEO of Artifact Labs, the future NFT is not merely a speculative asset, something that users buy in the hope of an increase in price over time. According to him, it is the next piece of the Internet trend, applied in more fields in the future.

Concerns about the crypto winter

Contrary to the above optimistic view, some experts believe that the winter of cryptocurrencies may last for another year.

“I think 2023 will be the cold period for cryptocurrencies. During the year, this market continues to be subdued, it will take at least two years to recover,” said Alex Au, founder of asset management firm Alphalex Capital in Hong Kong, told Nikkei Asia.

According to Au, most investors will wait for a recession. They choose to store digital assets in “cold wallets”, spending the rest of the money in other areas during the economic downturn. “The market can freeze for long periods of time,” Au said.

Meanwhile, Annabelle Huang of financial firm Amber Group thinks the cryptocurrency market will be “clinically dead” this year. “Everybody was panicking and didn’t know where to trade. They were just waiting for things to settle down,” she predicted.

After a period of growth, blockchain companies have laid off employees and tightened spending. Meanwhile, some governments have also moved to tighten control. Thailand recently restricted the approval of digital asset trading licenses to exchanges. In October, Singapore proposed rules banning credit lines from funding cryptocurrency purchases.

However, some think that this is also an opportunity to buy into digital currencies. According to financial services firm Matrixport, when the price of this currency is low, up to 80% of individuals holding a lot of cash and 70% of family offices in some Asian regions are looking to buy into the cryptocurrency. and wait for price increase.

“Our research shows that nearly half of investors see digital assets as the trend of the future. Their interest in the currency remains high, even as the crypto winter rolls on. harsh,” said Eugene Lim, head of private wealth management at Matrix Port.

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