Crypto market predictions for 2023

It’s 2023, where we order term sheet readers, a host of VCs, founders, private equity investors, and bankers, to see your crystal ball and tell us what to expect in the coming year.

For this year’s edition, we reviewed more than 100 predictions, ranging from quick opinions on whether venture capitalists would run for office to a thoughtful analysis of whether philosophy majors will be at the top of the hiring list in A world powered by artificial intelligence. And, of course, speculation about how many unicorns may lose their status and information about which sectors are most ripe for M&A deals. What about cryptocurrencies? Here’s what readers said 2023 would have in store specifically for tokens, NFTs, or DeFi, in their words:

(Note: some answers have been abbreviated for clarity and/or brevity)

“Dubai will become the crypto capital of the world. ” —Edith Yeung, General Partner, Race Capital

“In the first quarter of 2023, we will see more pain and cascading failures from centralized entities in the crypto and blockchain ecosystem, but ultimately it will be a healthy cleanup that puts the industry on a more sustainable trajectory and accelerates the pace. regulation with common sense. Blockchain applications that offer utilities such as stablecoins and tokenized assets will continue to rise, while monetary tightening will slow faster than expected and Bitcoin will outperform.” —Anthony Scaramucci, Founder and Managing Partner, SkyBridge Capital

“Web3 is apparently not going anywhere. Beneath the surface, however, some of the most important enabling infrastructure will be delivered by 2023.” —Richard Dulude, co-founder and partner, Underscore VC

“Venture capital firms with dedicated crypto funds will reallocate to the weather.” —Lauren Salz, Co-Founder and CEO, Sealed

“SWIFT will continue to experiment with central bank digital currencies (CBDCs), while more banks will join the USDF Consortium to facilitate blockchain-compliant transfer of value through bank-minted tokenized depository stablecoins.” . —Charles Birnbaum, Partner, Bessemer Venture Partners

“Cryptocurrency will lick its wounds in 2023, but I look forward to building a next generation of cryptocurrency app companies that will emerge in 2024.” —Russ Wilcox, Partner, Pillar VC

“2022 saw the collapse of numerous centralized crypto institutions, including FTX, Celsius, and Voyager. In 2023, I think the broader market will start to see centralized crypto institutions for what they are: poorly regulated, traditional fintech businesses. As such, founders who create truly decentralized products will strengthen their resolve and spawn a new generation of on-chain businesses that will fuel a resurgence in the space. Despite the claim that ‘crypto is dead’, I believe the next wave of transformation projects will be founded in 2023.” —Andy Kangpan, Principal, Two Sigma Ventures

“[About] 80% of all coins in circulation will stop working. However, this will be good for the industry as far too many projects have been speculative at best. While the industry will feel the liquidity crunch through 2023, only the best projects will be able to continue to raise funds to stay well capitalized and companies that over-leveraged or locked in large costs will suffer.” —John Wu, President of Ava Labs

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