What the blockchain market will look like in 2023
2022 is seen as a tough year in the blockchain space, with a number of top projects like Luna or FTX collapsing. However, experts say that if traditional companies turn to Web3, it will help end the “winter” faster, and blockchain games will contribute to the popularity of cryptocurrencies.
Digital screen showing cryptocurrency prices in Hong Kong in March. A photo: Bloomberg
Optimistic prognosis
“In 2022 we see a number of Web2 companies accepting cryptocurrency payments and also incorporating innovative forms of blockchain into services such as NFTs. This trend will continue as more people become aware of blockchain over the next year,” said Alexey Onufriychuk, head of Corite, a blockchain-based music crowdfunding platform. forecast.
According to Onufriychuk, the key to the “crypto planet” – the stage of cryptocurrency recovery and acceleration – is the mass adoption of Web3 applications by traditional Web2 companies. “As this transition accelerates, the focus will be on interface design and intuitive interfaces that will appeal to more users,” he predicts.
Slava Demchuk, CEO of blockchain company AMLBot, believes that decentralized finance (DeFi) will find practical applications in traditional banking. “Integrating DeFi protocols into the backbone of traditional banking systems is imperative to offer customers a more attractive and reliable alternative to today’s financial services,” said Demchuk.
Meanwhile, Yat Siu, co-founder and president of Animoca Brands, predicts that games will be a factor this year that will help expand blockchain culture, particularly through NFTs. The world of 2023 and early 2024 will see an influx of high quality blockchain games embraced by millions. As a result, blockchain is widely accepted.
According to Randy Wasinger, founder and CEO of data aggregator NFT CryptoSlam, the game development platform will not be Ethereum, but Polygon or another, more powerful blockchain. The game will initially attract users from Asia, then Africa, Europe and South America.
For Artifact Labs founder and CEO Gary Liu, the future of NFTs isn’t just speculative assets that users buy in the hope that prices will rise over time. According to him, this is another part of the Internet trend that will find application in many areas in the future.
Cryptocurrency lock-up issues
Contrary to the above optimistic opinions, some experts believe that the cryptocurrency winter could last a year.
“I think 2023 will be a cold time for cryptocurrencies. This market has continued to contract throughout the year and will take at least two years to recover,” said Alex Au, founder of Hong Kong-based wealth management firm Alphalex Capital. Asian Nikkei.
According to Au, most investors will wait for a recession. They prefer to keep digital assets in cold wallets and spend the rest of the money elsewhere during an economic downturn. “The market can freeze for a long time,” said Au.
Meanwhile, Annabelle Huang of financial services firm Amber Group believes the crypto market will be “clinically dead” this year. “Everyone is panicking and not knowing where to act. They’re just waiting for things to settle down,” he predicts.
After a period of growth, blockchain companies are laying off employees and cutting costs. Meanwhile, some governments have taken steps to tighten controls. Thailand recently restricted licensing permits for trading digital assets on exchanges. In October, Singapore proposed rules banning lines of credit to fund cryptocurrency purchases.
However, some believe that this is also an opportunity to buy digital currencies. When the price of these currencies is low, up to 80% of cash-rich people and 70% of family offices in some parts of Asia tend to buy cryptocurrencies and wait for the price, according to finance firm Matrixport. plant; grow.
“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 lingers. Hart,” said Eugene Lim, head of asset management at Matrixport.
Bao Lam (After SCMP, Forecast, Nikkei Asia)