7 Potential Crypto Trends That Could Explode Strongly In 2023
1. Decentralized Exchange (DEX)
Centralized exchanges have always had risks of concentration of power under certain individuals like current traditional business models. In the past, there have been several attacks that led to the collapse of major exchanges such as Mt.Gox (2014), Bitfinex (2016), Coincheck (2018) most recently FTX exchange and Alameda empire. Research by Sam Bankman-Fried. For the most prestigious and largest CEX in the market like Binance, it is also facing many difficulties in terms of legal regulations.
Experiencing the recent controversies surrounding centralized exchanges (CEX), the current investment community has understood the importance of “self-storage” of its assets. Demand, search and use of applications, decentralized exchanges (DEX) are getting more attention than ever, although there are still many disadvantages compared to CEX exchanges.
The current decentralized exchanges are also full of trading services that are no different from centralized exchanges (CEX) such as: Perpetual, Spot, Margin, Derivative, Option… Derivatives array on DEX still has many weaknesses and somewhat difficult to reach for users. However, with the continuous improvement and development of existing dApps, exchanges (DEXs) will gradually become user-friendly and compete for market share with centralized exchanges (CEX), making the puzzle pieces still stub on DEX becomes even more potential.
Some prominent DEXs:
2. Layer 2 & Ethereum
The change of mechanism to “Proof-of-Stake” after the Ethereum upgrade – The Merge, has contributed to making this network more user-friendly than ever, while also fulfilling its goal of making Ethereum the should be “deflated”.
Currently the ETH network developers are working to ensure that the transaction validation is well distributed, while also allowing users to withdraw from the staking contract. (Slated for March 2023) and solves transaction validation issues on the network.
This helps Layer2 to benefit greatly, especially Arbitrum and Optimism. These are two networks that are loved by developers and own a large ecosystem and active community on the network. big money poured into the network.
Some outstanding Layer 2:
- Optimism (OP)
- dYdX (DYDX)
- Loopring (LRC)
3. Liquid Staking Derivatives (LSD)
Ethereum developers announced that they have launched a testnet version called “Zhejiang” that allows users to test ETH staking withdrawals before the launch of the Shanghai Hard-fork board in March.
The fact that Ethereum allows users to withdraw ETH Staking, will solve users’ concerns when having to lock the amount of ETH staking on the Mainnet for a long time.
Projects that promise a “boom” for the LSD field in the near future such as:
- Lido Finance (LDO)
- RocketPool (RPL)
- Frax Finance (FXS)
- StarFi (FIS)
- pStake (PSTAKE)
4. Zero Knowledge (ZK)
Binance CEO CZ announced that Binance has integrated zk-SNARKs technology into the platform’s Proof-of-Reserves user asset verification system.
At the same time, BNB Chain added that it will boost ZK Tooling in 2023. At the same time, Binance also aims to “more than triple” the number of validators to ensure better network governance.
Many projects are in the process of developing ZK technology and have made certain progress: Polygon’s zkEVM, StarkNet’s token launch, zkSync 2.0 (zkSync’s zkEVM) rebranding to zkSync Era and opening Fair Launch Alpha…
Some notable projects in the ZK array are:
- Mina Protocol (MINA)
- Dusk Network (DUSK)
- ZigZag (ZZ)
- Metis Network (METIS)
- Immutable X (IMX)
5. Artificial Intelligence (AI)
AI has been a hot topic since the beginning of the year when AI Bot ChatGPT was launched. A wide range of projects in the Crypto space have benefited with impressive growth.
Big companies like Microsoft and Google are pouring money to develop this puzzle piece, which is expected to create a long-term “war” rather than simply existing seasonally (like the trend of Fan token in the last WC period).
In general, in terms of technology, the combination of artificial intelligence (AI) and Blockchain will open a new technology era that is more complete than the Web3.0 picture. However, this trend is only now ramping up thanks to OpenAI releasing the ChatGPT product at the end of November 2022.
Projects under construction in the AI field are not 100% complete.
Many projects are trying to step into this puzzle piece so it has a very long journey in the future.
Artificial intelligence products have not really become accessible to users even in countries with today’s top developed technology sectors. Currently, it still needs a lot of time to really be highly applicable.
AI Trend can completely continue to “explode” when the technological infrastructure becomes as ubiquitous as the widespread use of Smartphones in the past 10 years.
A few prominent names that are leading the AI trend must be mentioned such as:
- SingularityNET (AGIX)
- Fetch.AI (FET)
- Ocean Protocol (OCEAN)
- Numeraire (NMR)
NFT Finance (NFTFi)
Blur after being listed on exchanges and having a “huge” airdrop to users. This makes the community pay attention to this project as well as the NFTFi or NFT Marketplace in general.
NFTFi is a combination of “NFT” and “Finance”, aiming to “increase NFT liquidity and optimize cash flow” for NFT collectors.
Some of the prominent names are:
- Blur (BLUR)
- BendDAO (BEND)
- Wing Finance (WING)
- X2Y2 (X2Y2)
- LooksRare (LOOKS)
Domain Name and User Identity (ENS & Identity)
Ethereum founder Vitalik Buterin once showed special interest in the field of “Decentralized Identity” with the Proof-of-Humanity application to limit the situation of Hackers taking advantage of anonymity in the market. school to commit bad deeds.
Ethereum Domain Name Service (“ENS”), Lens Protocol, and Unstoppable Domains add the ability to identify assets and store wallets through wrapped-NFTs, just as domain registrars provide for human readable web site domains pointing to different IP addresses.
Users can move their Crypto assets to other users via domain names (ENS Domain) without the usual long string names of random characters.
The number of domain names registered by users increased “spill” in the period Q2-Q3/2022, at present it is not difficult to see accounts on platforms with .eth, .crypto, .lens, . bnb… similar to popular domain names like .com, .org, .io
However, the identification of people to participate in activities on the Blockchain has received many mixed opinions when it loses the inherent decentralization and anonymity of Blockchain. However, this is still a potential piece to be able to connect traditional users to Crypto more easily and support the development of the SocialFi space in the near future.
Conclusion
The above article has compiled 7 crypto trends that are determined to explode in 2023 as well as introduced some outstanding projects for readers to have a better overview and will find new investment opportunities.
Hope the above article is useful to you. If you have any suggestions, please leave a comment below to make our article more complete.
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