Exchange – 5 Crypto Trends and Market Outlook in 2023

Throughout 2022, we have witnessed a blur of reality and fantasy in the crypto industry. Despite many dramatic developments, crypto assets have not stopped moving forward. The best footnote of the year for crypto assets is the vitality and vitality of change and evolution.

As speculators pull off their masks amid the market’s tumult, it’s time to calm down and reexamine the future of crypto assets. Based on the current situation of crypto assets, this paper analyzes the development and opportunities of the industry to help global investors grasp the future direction in the new round of wind.

1. Strengthen crypto regulation to ensure transaction security

Calls for cryptocurrency regulation are louder than ever. This is clearly a direct response to the turbulent markets of 2022. So 2023 will see more stringent regulation and enforcement.

On the regulatory front, the European Union has passed the Crypto Asset Markets Regulation Act (MiCA). “MiCA is a landmark bill, which represents the transition of the crypto asset market from ‘crazy growth’ to ‘compliance regulation’ and into the era of unified regulation,” said analysts at the exchange. For crypto asset trading platforms around the world, it is also an important signal that the industry is here to stay.

2. Shift to decentralized finance and DeFi will go mainstream

The series of negative events in 2022 has led to a significant decline in trust in the crypto market. To better protect their assets, investors will pay more attention to the operation of decentralized systems. In addition, there is increasing institutional attention to DeFi, especially in payments, AML solutions and other areas, where international banks and financial institutions have started to dabin.

According to incomplete statistics, by 2022, Citigroup, blackrock and other financial services companies had invested more than 1 billion yuan in Defi platforms

Us dollars. Strong interest from institutional clients has also added to investor confidence in DeFi. Based on this, it is estimated that DeFi may become mainstream in 2023, ushering in a market explosion.

3. Central bank digital currency (CBDC) will accelerate research and development and further expand trials

The development of CBDCS globally will be driven by a sharp increase in demand for cross-border payments and volatile shocks in the cryptocurrency market. More than 100 countries and regions around the world are currently exploring central bank digital currencies (CBDCS). In August, the European Central Bank suggested CBDCS could be the “holy grail” of cross-border payments. Some central banks are even considering whether to offer CDBCS on physical cards.

Take the United States as an example. As early as last September, the United States released the Technical Assessment of the US CBDC System, formally determining the policy objectives and technical design plan of the US CBDC system. In interviews with users of the exchange, more than 70 percent of users from five global regions agreed that “CBDCS will have greater potential and even revolutionize the financial industry in the next five years.”

4. Weaken single investment and build a variety of portfolio ecology

Market turmoil is a common occurrence in finance, but it is unlikely to turn away wealth. For users, how to ensure the steady increase of income in the ups and downs of the market is the key to thinking at present.

In 2023, users will start to diversify their investment risks from “single investment” to “portfolio investment”. “We often receive many questions from users about their investment portfolios. Our advice is to build a diversified portfolio ecosystem that is suitable for them, and to achieve a balance between sound returns and diversified investments, and allocate assets scientifically,” said an investment adviser at exchange.

5. The popularity of Game Fi is not decreasing, and it is worth looking forward to

With the iterative update of the blockchain field, some novel plays have begun to emerge. Game Fi integrated with digital assets is the product of the new business model. It is estimated that Game Fi game projects will become more and more popular in 2023 and become a hot spot for market investment. Recently, exchange released the information about “Belem is about to shock the launch of meta-universe game (TUG)”. This is a testament to Game Fi’s popularity.

The advent of Game Fi provides a new way for players to not only use digital assets, but also earn additional assets. The exchange also has a number of users who are interested in Game projects. These users have commented on the forum board of the exchange, “You can make money while playing, which can only be achieved on Game Fi.” Similarly, Kenneth, the market operator of exchange, is also optimistic. She puts forward the view that “the game brings its own traffic”, and mentions, “The game brings its own community, attracting a player means attracting a strong community behind it. “Our team expects the gaming space to show impressive growth.”

No one is born perfect, and the same goes for crypto assets. But there is no doubt that crypto assets do offer a new track full of opportunities for the global financial industry, such as innovative financial services, convenient payment methods, and of course, great wealth, all of which depend on the crypto asset ecosystem.

For all the uncertainty, the beauty of crypto is precisely that, for all the challenges, it is still a market with extraordinary potential. In 2023, we can foresee that this dynamic and innovative field will eventually feed back players like who are still in the wave of technological innovation and long-termism.