NFTs, Transparency, and Regulations: 3 Trends That Will Influence the Crypto Industry in 2023
NFT
January 18, 2023

Will 2023 be crypto’s year? After the tumult of last year, what will be the trends influencing the market this year?

One trend is the push for transparency. Cryptocurrency exchanges and businesses will make their practices more public and transparent so that the public can regain trust in the industry. 

Some prominent players (Binance, Coinbase, and others) have begun publishing their proof of reserves. If nothing else, 2022 has shown that this is a MUST.

As inflation continues to ease, investors will have more disposable income. If they choose to invest it in crypto, one might see the crypto winter slowly melting away.  In fact, at the time of writing, the crypto market capitalization stood just shy of the $1 trillion mark, and Bitcoin surged past the $21,000 mark. 

NFT Corporate Adoption Likely to Rise

Last year, the focus was on profile picture (PFP) NFTs. But they have led to a flood of competition which has caused severe over saturation. This, combined with a collapse in trading volumes on NFT marketplaces, further generated a sense of apathy in the NFT space. 

Only specific blue-chip collections, such as CryptoPunks, have managed to maintain their ETH floor prices. The dollar floor has also fallen with the collapse of crypto prices in general. Nonetheless, the focus on collectibles and art should instead be pointed toward the unbelievable utility of more general NFTs.

The Beginning of the Transition 

“Tokenizing” these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud. Examples include Starbucks’ NFT loyalty program, Adidas pairing NFTs with physical items, the New York Knicks offering NFTs to ticket holders, and Reddit’s Avatar NFTs. This trend of corporate adoption of NFTs is expected to increase 2023. Also, with the proliferation of Layer-2 solutions like Polygon, corporate adoption of NFTs is only going to rise. 

Reddit NFT
Reddit’s Avatar NFTs

Max Krupyshev of CoinsPaid highlights three trends that will influence 2023 in the crypto industry. Among these are proof of reserves and transparency of crypto companies, a rising need for crypto tokenization of securities, regulation, and new applications for NFT technology. 

2023 will be a lot about transparency for the crypto companies, he says. Firstly, any centralized platform will have to prove that they know what they are doing by showing its reserve of funds. 

“Businesses will have to prove they are legit, and we may see some promising consortium of companies playing by the rules. There can also appear an independent group of people who will be imposing some non-official regulations for the companies,” he said.

This article is for informational purposes only. It is not offered or intended to be used as investment or other advice.
Share:
LASTEST INFORMATION