12 Cryptocurrency Trends That Will Dominate in 2023

In 2022, 16 percent of American adults said they had traded or used cryptocurrency in some way. 2023 is sure to draw more Americans into the world of cryptocurrency investing.

If you’re planning to buy cryptocurrency in the new year, you’ll want to know about upcoming cryptocurrency trends. Staying ahead of the game can provide a huge advantage when it comes time to invest in crypto.

The following guide will cover 12 upcoming trends for 2023 to help you develop the best cryptocurrency strategy.

1. New meme coins

As of 2022, there are over 200 meme coins available for cryptocurrency investors. Many thought meme coins were just a fad, but expect even more to enter circulation during 2023.

If you don’t already know, meme coins refer to popular coins that basically go viral on the internet. They are usually slightly comical in nature and linked to a meme. Please note that most currencies are extremely volatile and have little or no intrinsic value.

That being said, the Dogecoin meme coin has registered a market capitalization of over $11 billion since its inception in 2013. Only time will tell if another meme coin can skyrocket in 2023, but many newcomers are likely to give it a try.

2. Demand for reliability and speed

Investors often look for safer assets in bear markets during volatile times. For the cryptocurrency world, that usually means bitcoin or stablecoins. BTC has always rallied after crashes and has shown excellent resilience.

Bitcoin will pull the weight and help the market rally in 2023 and it has done it time and time again. Savvy investors might also turn to Ether due to its powerful presence in the DeFi arena. Expect coins with faster transaction speeds to be in high demand as well. He XRP vs. bitcoin Speed ​​comparisons could be a hot topic as Ripple tries to come back.

3. Participation of the metaverse

Currently, the metaverses don’t have a large social base to lean on, but that could change in 2023. Expect various metaverse crypto projects to start gaining attention in the new year. As more people join the metaverse, more investors will take notice.

The metaverse allows players to go to concerts, casinos, and other social events to interact with others. Players can create their own social experiences without any coding knowledge and get paid for them.

For example, Metacade plans to be a fully decentralized metaverse arcade. It will offer several Play to Earn games designed and curated by the Metacade community. Projects like Decentraland aim to allow gamers to sell decentralized plots of digital land.

4. A breakout year for NFTs

NFTs were all the buzz during 2021, but things took a turn for the worse very quickly during 2022. Opensea, the world’s largest marketplace for NFTs and digital collectibles, experienced severe volatility.

Opensea reported its biggest monthly trading drop in January 2022, which was a whopping 94% decline. The decline was so shocking that analysts wondered if it would mark the death of digital collectibles.

NFT volume could recover in 2023, but it is highly unlikely that they will reach their 2022 peak levels. That is not to say that they will never fully recover, just not in a single year.

5. More regulations

Expect more crypto regulations to emerge in 2023 on a global scale. The goal of legislators around the world will be to establish new laws and guidelines to protect crypto investors. That added protection could be enough to attract many new investors to cryptocurrencies.

Tighter regulation should help discourage cybercriminals and reduce fraud. However, different agencies may not have jurisdiction over everything they want, which complicates the process a bit.

President Biden plans for the IRS to closely track the crypto activity of US citizens and make sure they file their taxes. This will also make it much easier for investors to report crypto losses.

It is predicted that taxing cryptocurrencies in 2023 could generate $5 billion in revenue. Furthermore, it is expected to generate $11 billion in the next 10 years.

Not all investors see additional crypto regulation as a good thing, and that could affect prices as announcements are made. But most experts agree that regulation is positive for the long-term success of the industry.

6. Cryptocurrency ETFs

It is very likely that we will see more cryptocurrency ETF approvals in 2023. In 2021, the first Bitcoin ETF hit the New York Stock Exchange. The development was a breakthrough and provided investors with a traditional way of investing in cryptocurrencies.

The Bitcoin ETF called BITO allows investors to participate in the crypto market directly from conventional investment brokers. Investors don’t even need to create new accounts, they can use existing accounts on platforms like Vanguard or Fidelity.

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It is important to note that some experts are not entirely convinced of the BITO ETF. This is because it is only pegged to BTC and could hold futures contracts instead of BTC.

Experts claim that while Bitcoin futures follow the general trends of actual cryptocurrencies, they still may not follow the price of Bitcoin directly. Therefore, investors may want to continue to wait for an ETF that holds Bitcoin.

2023 could be the year an ETF containing real Bitcoin appears, so keep your eyes peeled. However, expect the ETF to be risky and volatile just like the crypto it contains.

7. Web 3.0 causes a sensation

Expect the third version of the internet called Web 3.0 to gain more traction in 2023. It will offer a sustainable answer to those who want to run their websites without using a large corporation’s server or paying expensive fees.

Web 3.0 will allow people to personalize the Internet and avoid single point failure. That means a site can crash and other activities won’t be affected by it.

The emergence of Web 3.0 could also help boost cryptocurrencies like Ethereum and Livepeer. Basically any cryptocurrency that is connected to the third version of the internet in some way.

8. Additional features for corporations

Giant brands like Google, Disney, Microsoft, and Google will continue to explore cryptocurrency and metaverses in 2023. They will also pay close attention to dynamic use cases and how cryptocurrency integrates with NFTs and metaverses.

Microsoft is currently creating an environment to allow workers to interact with each other more efficiently no matter where they are. The project called Virtual Office uses blockchain technology and should bring more versatility to corporate dealings.

Investors are watching closely to see how much corporate interest could rise next year. It could create many new use cases for different crypto services and products.

9. Crypto goes green

It is no secret that cryptocurrencies have so far had a damaging influence on the environment. For example, carbon emissions from Bitcoin mining have raised a lot of concern in recent years. It takes a ton of energy to power the BTC proof of work method.

Fortunately, the new blockchain networks hope to provide greener practices in 2023. Expect the crypto sphere to start embracing more ways of using green energy instead of fossil fuels in the future.

10. L2 Smart Contracts

Experts predict a rise in popularity of Layer 2 smart contracts throughout 2023. Currently, the two largest cryptocurrencies are Bitcoin and Ethereum and both are Layer 1 cryptocurrencies. So if Layer 2 continues to gain ground, could shake up the market.

Layer 1 blockchain networks do not offer any scalability, which is what L2 smart contracts hope to improve. The ability of cryptocurrencies to have infinite scalability is crucial for digital currencies to achieve mainstream success.

11. Ethereum 2.0 makes a statement

Expect Ethereum to fully switch from proof-of-work to proof-of-stake during 2023. The transition will save a substantial amount of energy when it changes its validation process.

Ethereum 2.0 should also reduce the circulating supply by adding EIP 1559. That means the ETH price could rise due to scarcity.

ETH upgrades should also improve transaction speed and scalability. Anyone with basic computing power will also be able to run a validation node.

12. Cryptocurrencies and War

Digital currencies played a role in the Russian invasion of Ukraine for both countries in 2022. For example, Russie used cryptocurrencies to fight sanctions and avoid limitations.

On the other side of things, Ukraine accepted crypto donations to help their efforts. Expect more people and organizations to support Ukraine through crypto donations as the war continues.

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Follow cryptocurrency trends

Now you know 12 cryptocurrency trends to follow in 2023 to help you invest. While the wild world of cryptocurrency is hard to predict, there are certainly some great clues as to where it is headed.

From meme coins to facilitating wars, 2023 should be another exciting year for digital currencies. Check out the crypto category on our site for more detailed information and helpful tips.

Crypto News Flash does not endorse and is not responsible for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any action related to cryptocurrency. Crypto News Flash is not liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, goods or services.

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