Wondering which cryptocurrency will explode in 2023? Or possibly, which crypto has the most potential in 2023 We’ll cover all this and more!
2023 is going to be a tough act to follow, that’s for sure! Bitcoin really reached for the Moon after it’s halvening and reminded us all the crypto dream is still a reality.
But when you ask what’s probably going to happen in 2023, most cryptocurrency investors give very different answers, so it gets pretty hard to get a clear answer on which will make traders’ their fortune in 2023.
And it’s not just Bitcoin you should keep your eyes on, there’s a lot to be excited about in 2023, and you should keep track of it all! (Sometimes that’s just impossible!)
While Bitcoin is drawing in the big institutions and Ethereum is watched closely as it finally starts transitioning to proof of stake.
And looking more closely at altcoins, there is still a wealth of opportunities there too! Plenty that you can still buy into at a low price and profit from much later.
Of course though, in the end it’s all about popularity. The more a coin is used, and potential applications it may offer, the higher its value will become. But that also works both ways - if a cryptocurrency becomes less popular, it can easily stagnate and decline in value too.
In this article, we’re going to look into the top 15 cryptocurrencies to know and watch - and depending on your judgement - best coins to buy this year!
Top 15 Cryptocurrencies To Know And Watch In 2023:
- Bitcoin (BTC)
- Solana (SOL)
- Ethereum (ETH)
- Shiba Inu (SHIB)
- Dogecoin (DOGE)
- Cardano (ADA)
- TRON (TRX)
- Binance Coin (BNB)
- Stellar (XLM)
- Uniswap (UNI)
- Chainlink (LINK)
- IOTA (MIOTA)
- Zcash (ZEC)
- Litecoin (LTC)
- NEO (NEO)
If you want to dive into the crypto market quickly and easily, check out eToro!
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
We’ve organised our list based on which cryptocurrencies present the best opportunities for 2023. But all in all, each one is worth keeping an eye out for.
1. Bitcoin (BTC)
Bitcoin is always first in line in the world of cryptocurrency!
Yeah, we know, every list always talks about Bitcoin first … blah blah blah! But 2021 was very, very different. In 2021 we finally saw some major action with Bitcoin, at last reaching $60k territory and then shooting right past it!
Bitcoin offers perhaps the best short term cryptocurrency investment for 2023. We are yet to see what exactly will happen.
Will it continue to rise to new levels in 2023 or will it find a new point to start ranging at with clear levels of support and resistance? Or Will we have to wait until another halvening until we see such an enormous rise?
Experts are expecting that BTC will continue breaching new heights in 2023. But of course, there could be some occasional dips in price.
So, bear in mind that Bitcoin’s journey will not always be upwards! In fact, we may also see a lot of ranging at times too as prices stabilise between peaks and troughs.
But then again, some things just can’t be predicted, like Tesla announcing that they have bought $1.5 billion of Bitcoin in early February, and the price shooting upwards past $48k the following day! (Another record!)
We also should not forget two major things that make Bitcoin perhaps the best crypto for 2023:
1) Institutional traders and big banks are getting deep into Bitcoin - they are finally seeing its potential.
And, 2) Bitcoin is like the ‘gateway drug’ to the cryptocurrency world. It’s the most well-known cryptocurrency and newbies tend to turn it first when they start out, before going on to explore other opportunities.
With that in mind, Bitcoin is still perhaps the crypto with most potential in 2023, and you better keep an eye on it! Despite this, Bitcoin traders should still be cautious of a potential crash, don’t start thinking the market can only go up!
- Approximate market cap: $924.8 billion
- Established: 2009
Read our article on Bitcoin here.
Have you considered investing in Bitcoin (BTC)?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
2. Solana (SOL)
Solana is one of the best performers of 2021, and we expect it to do exceptionally well in 2023 as well. You probably have your doubts about Solana, considering it has been attacked twice this year.
Such concerns are legit considering that analysts in the mainstream media have raised them, too. For instance, Grayscale Investment Trust noted that Solana uses untested blockchain technology with flaws in its cryptography. This could allow an attacker to exploit these vulnerabilities, resulting in lost coins or a network collapse.
That said, Grayscale did not completely write off Solana. They also gave an analysis that is pretty bullish for Solana. One of them is the strength of Solana’s team. Grayscale noted that Solana’s development team comprises talented individuals from top companies like Google and Apple.
Grayscale aside, there are a number of other reasons why we are pretty bullish on SOL. For instance, despite its security issues being addressed, Solana has a community that believes in it.
This is evident in the fact that Solana has maintained its value after the two attacks that have come within months of each other. Many projects disappeared to never recover after attacks that raised doubts on their network security. That’s a plus for Solana and a reason to believe in the future of SOL.
On top of that, analysts seem to have some pretty strong projections for Solana, despite all the issues that it has gone through recently. For instance, according to analysts at Coin Price Forecast, Solana could gain by 100% by the end of 2023.
Wallet Investor analysts have given similar bullish projections. Wallet Investor predicts that by the end of 2023, Solana could be trading at $551. That’s almost 3X Solana’s current price.
Approximate market cap: $55,187,165,573
Approximate price per coin: $179.19
Established: March 2020
Have you considered investing in Solana (SOL)?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. Ethereum (ETH)
The queen of the cryptocurrency world is still going strong!
Now, as you probably already know, Ethereum is completely different from Bitcoin in a range of ways. Ethereum has its sights set far beyond just revolutionising how we use money but also how we use the internet!
And that vision is slowly but surely coming to fruition. In the first quarter of 2020, it was reported by the Cointelegraph that there are now 635 functioning DApps operating on Ethereum, with a total of 616,369 ‘active’ users.
While DevTeam.Space, in an article about DApps in 2021, claims there are up to approximately 3,000 on Ethereum! (That said, functioning or not isn’t clear.)
Either way, that’s potentially a very large increase and shows us that Ethereum is still very much growing in terms of usage and this will impact its valuation, potentially making it one of the best cryptocurrencies in 2023.
Another vital thing to remember about Ethereum is that it is typically a new trader’s second choice after Bitcoin.
Once they get a taste of Bitcoin, they typically move on to start investing in Ethereum, the second-largest and well-known cryptocurrency.
In 2021 Ethereum reached new highs. This is likely partially to do with the increased interest in Bitcoin (a knock-on effect that will likely affect much of the cryptocurrency market).
It rocketed upward in November 2021 to reach $4,891 per coin. Though it should be said, experts such as Capital.com believe that ETH price could rise to $7,000 in 2023, while some investment bank analysts saw the potential for the price to climb higher.
However, the most important thing to watch out for is Ethereum shifting from proof of work to proof of stake.
Though Ethereum 2.0 upgrade was launched in December 2020, the transition should be completed at some point in 2023. The move has been discussed for years and is long-awaited. Upon completion, there could be some movement upwards.
- Approximate market cap: $474.8 billion
- Approximate price per coin: $4,000
- Established: 2015
Read our article on Ethereum here.
Have you considered investing in Ethereum (ETH)?
4. Shiba Inu (SHIB)
Shiba Inu may feel like it’s getting a little too old at this point. It is already up by millions of percentages and has been on a downtrend since October 2021.
There are also legitimate fears that the era of meme coins is over. For context, consider the fact that Dogecoin is still bearish despite Elon Musk announcing that Tesla would start accepting Doge for payments.
However, it is times of fear and uncertainty that money is made. That’s the time when savvy investors get to take positions in quality assets that could outrun the market once the sentiment turns positive.
To understand why you need to understand that it’s not just meme coins that are underperforming at the moment. It is the entire cryptocurrency market. Bitcoin (BTC) has been sliding lower all through December but seems to have found strong support around the $47k price level.
Going into 2023, we expect Bitcoin to rally back through $60k. The fundamentals are sound, especially on the aspect of institutional adoption. If Bitcoin rallies, the broader market will follow, and meme coins, for their perceived cheapness, are likely to draw in the most investors.
So where does Shiba Inu come in, in all this? Well, Shiba Inu happens to be one of the best-known meme coins in the market. This means it is one of the meme coins that new investors looking to jump on the meme coin train are likely to notice first, alongside Dogecoin.
Analyst projections for Shiba Inu also add to its potential to rally going into 2023. According to analysts at Wallet Investor, Shiba Inu has the potential to hit $0.000088. That would be a significant jump for SHIB considering that it is currently trading at $0.0000320.
Approximate market cap: $17,766,363,992
Approximate price per coin: $0.00003237
Established: August 2020
Read our article on Shiba Inu here.
Have you considered investing in Shiba Inu (SHIB)?
5. Dogecoin (DOGE)
The king of the meme coins, Dogecoin gave investors life-changing gains between 2020 and mid-2021. If you bought Dogecoin back in 2020, you made an easy 12,000%+ ROI by May this year.
But what next for Dogecoin, considering that it doesn’t seem to do much these days? Well, Dogecoin may be a potentially big winner, but its price movements are ultimately tied to Bitcoin (BTC).
For instance, while Elon Musk gave fuel to the Dogecoin rally of 2020, the real trigger was Bitcoin. Dogecoin’s rally only started after Bitcoin rallied through its 2017 all-time highs of $20k.
At the moment, every Dogecoin investor should be focused on the price of Bitcoin. For Dogecoin to rally again in 2023, Bitcoin needs to push through its recent all-time highs of $69k. That’s very much within the realms of possibility.
At the moment, Bitcoin has found strong support at $47k, and the news that triggered its correction have pretty much been factored into the market.
Among the factors that triggered the market correction was the news of Omicron. So far, all financial markets, not just crypto, seem to have priced in Omicron, and institutional appetite for crypto is still high. This means it’s highly likely for Bitcoin to uplift the entire market in 2023.
Like in 2020, Dogecoin has the fuel that could see it make new highs going into 2023. The biggest one is the adoption of Dogecoin by Tesla. The move by Tesla has given Dogecoin added legitimacy as a transactional cryptocurrency, a factor that could see it gain significantly in value going into 2023.
Analysts are pretty bullish on Dogecoin too, and that’s a good sign. While they don’t expect Dogecoin to do a 10,000% ROI like in December, there is consensus that DOGE could gain by 100% going into 2023.
For instance, Wallet Investor expects Dogecoin to end 2023 at $0.38. That’s a more than 100% rally off its current price. Essentially, if you want to double your money in 2023, Dogecoin is just a good bet as any other.
Approximate market cap: $22,625,183,425
Approximate price per coin: $0.1705
Established: December 2013
Have you considered investing in Dogecoin (DOGE)?
6. Cardano (ADA)
Two chains are better than one!
Probably most of us know by now Cardano’s primary selling point is its ‘ouroboros blockchain’ - or blockchains, if you will - one for regular transactions and second for smart contracts. (If Cardano was a rapper, it would be ‘2 Chainz’.)
Now, while to some of you this may sound like old news (it is), we are still yet to see this potentially genius idea pushed to the max; to see if their solution really does work and can solve the issue of scalability.
Sometimes we forget, but if the issue of scalability is not solved, cryptocurrency doesn’t really have a fighting chance to take off and truly take on fiat money.
To give up on this project now would be a little foolish. Cardano still has the chance to be the next cryptocurrency to explode in 2023, but if you quit now and it happens, you’ll feel very sorry for yourself!
So have some patience. It’s easy to forget that, especially since Cardano was very explosive back in early 2018.
Do note though, some of that volatility has been returning in recent months with some sources, such as Coinpriceforecast believing that Cardano could reach $1.79 per coin.
Trading Beasts predict an increase in Cardano’s price, believing that it will reach $1.58 by December 2023.
- Approximate market cap: $43 billion
- Approximate price per coin: $1.26
- Established: 2017
Read our article on Cardano here.
Have you considered investing in Cardano (ADA)?
7. TRON (TRX)
Is TRON still quietly ploughing ahead in secret?
People forget that TRON has a hell of a lot going for it.
But perhaps the biggest thing they overlook is that TRON started out on the Ethereum network! Why is this significant? Because it means it uses the same coding language - Solidity.
This is a huge advantage for TRON because it means that DApp developers can easily move from developing on Ethereum to TRON.
So, if there ever is a strong reason to move away from Ethereum (e.g., too costly, scalability issues, functional issues), TRON will be one of the first alternatives they will likely think of.
With this in mind, it is highly possible that TRON could be very undervalued. Now do bear in mind that we might not necessarily see a significant profit from TRON in 2023, but it may be the perfect time to get in and hold before it’s too late.
Trading Beast predicts that by December 2023, TRON could reach a maximum price of $0.131, a healthy increase.
- Approximate market cap: $7.9 billion
- Approximate price per coin: $0.078
- Established: 2017
Read our article on TRON here.
Have you considered investing in TRON (TRX)?
8. Binance Coin (BNB)
The Binance Exchange’s utility token is still very popular, but what does its future hold?
Binance Coin is a pretty simple crypto, but hey, what’s wrong with being simple in the complex world of cryptocurrency trading?
Look at Bitcoin, it’s nowhere near as complicated as some of the other cryptos on this list, but yet it thrives!
The question about Binance Coin though, is how long it will truly be worth trading? Will it still serve some use in the future? And if so, what will that be beyond the Binance Exchange?
And, furthermore, what about the discount the exchange gives for using the coin to purchase crypto? Will it stay the same or will Binance continue to reduce it as they originally planned?
According to page 9 of Binance’s whitepaper, by the fourth year (which would be 2021), the discount would be only 6.75% for paying certain fees with Binance Coin. However, so far, they have not reduced it from 25% for the last two years.
And by the 5th year (which would be 2023), it was intended there would be no discount. But perhaps this idea is now abandoned? Binance needs to clarify their intentions.
All this makes it hard to say where Binance Coin will be in the near future, but for now, at least, it is possible to make some profits trading it.
That aside, Digital Coin Price predicts that Binance Coin could reach as high as $860 in December 2023.
- Approximate market cap: $16,060,572,142
- Approximate price per coin: $103.35
- Established: 2017
Read our article on Binance Coin here.
Have you considered investing in Binance Coin (BNB)?
9. Stellar (XLM)
Is Stellar a viable alternative to Ripple?
Stellar saw some tidal waves of volatility back in 2017 and 2018, and then entered a period of quiet that ended pretty recently (just like many other altcoins).
The aim of Stellar is a familiar story we hear throughout the crypto community: ‘let’s help bank the unbanked’.
According to the World Bank, approximately 1.7 billion adults are ‘unbanked’, which they define as ‘without an account at a financial institution or through a mobile money provider’.
It’s a pretty honourable cause, but it’s also a pretty tough one as well, which is likely why they now focus more on connecting financial institutions with each other via the blockchain.
Perhaps in terms of technology and aims, Stellar most similarly resembles Ripple. In fact, Jed McCaleb, the co-founder and CTO of Stellar, previously worked on Ripple before leaving, disagreeing with the direction they were heading.
With this in mind, Stellar could be a good hedge against Ripple or if you think that the approach the two are taking is the approach that will win over the mainstream.
Especially when Ripple is facing some legal issues, Stellar might stand out as potentially one of the best cryptos to buy in 2023.
Trading Beast predicts that by December 2023, that the maximum price to expect for Stellar is $0.41 and a minimum of $0.28.
- Approximate market cap: $6.5 billion
- Approximate price per coin: $0.26
- Established: 2014
Read our article on Stellar here.
Have you considered investing in Stellar (XLM)?
10. Uniswap (UNI)
Uniswap looks like a pretty common-sense investment for anyone interested in cryptocurrency. It is the number one decentralized crypto exchange by volume, and its adoption has grown steadily over the years. This pretty much means Uniswap has a strong intrinsic value compared to many other cryptocurrencies.
However, like most cryptocurrencies, Uniswap is not without its controversies. A while back, the decentralized nature of Uniswap was brought into question after Uniswap Labs delisted more than 100 synthetic tokens citing regulatory concerns in the U.S.
For instance, an article in PR News Wire wondered,
“How can we say that Uniswap is decentralized when it still has a centralized interface and new iterations of the exchange will be released?”
Such concerns caused the price of UNI to drop but it bounced back. That’s after investors came to realize that the Uniswap protocol is decentralized and that it can keep operating even if Uniswap Labs were to cease operations.
Looking forward into 2023, there is a lot to look forward to for UNI. For starters, the market seems to be bouncing back after its early December correction. As the price rises and FOMO kicks in, volumes on Uniswap will rise as well. This will add to an increase in the intrinsic value of UNI, the token that governs Uniswap.
Analysts have some pretty bullish forecasts for Uniswap too. According to Coin Price Forecast, Uniswap can grow by 43% by the end of 2023. That’s a fair ROI when you consider it one of the safer cryptocurrencies in the broader market.
Approximate market cap: $9,354,037,379
Approximate price per coin: $14.90
Established: November 2018
Have you considered investing in Uniswap (UNI)?
11. Chainlink (LINK)
Chainlink is quite the contradiction. On one hand, it is one of the most fundamentally strong cryptocurrencies in the market today. On the other hand, this year, Chainlink has underperformed the broader cryptocurrency market.
So what next for Chainlink (LINK)? Well, despite its sluggish performance in 2021, there are many reasons why Chainlink could outperform the market going into 2023. For starters, many investors are burning their fingers while investing in meme coins. Scams are quite common, and it won’t be long before investors start to focus more on cryptocurrencies with solid fundamentals.
You are probably wondering, what makes Chainlink unique? Well, consider that it is the largest decentralized oracle cryptocurrency in the market today. Chainlink accounts for more than 60% of the oracle markets, making it the Bitcoin of decentralized oracles.
So what about it being the largest oracle cryptocurrency in the market? Well, for smart contacts to run, they need data from the outside world. Essentially this means that the fast-growing DeFi space is heavily reliant on Chainlink for it to function.
Chainlink is also technically advanced and well-positioned to grow in its market. For instance, it is not just the likes of Ethereum that suffer from scalability issues; oracle blockchains have similar problems too.
Chainlink deals with scalability issues by making use of hybrid smart contracts. This is basically the use of off-chain data combined with on-chain data to take off pressure from the Chainlink main chain.
With the fundamentals sound and fundamentally strong cryptos becoming more attractive to investors, Chainlink has a good future ahead of it.
Analysts seem to hold this view of Chainlink too. According to Coin Price Forecast, Chainlink could close 2023 higher by 47%.
In a highly volatile environment like the one cryptocurrencies are in at the moment, this is a good ROI. It’s a much safer bet than some new unknown coin that could collapse at any moment.
Approximate market cap: $8,9 billion
Approximate price per coin: $19.07
Established: June 2017
Have you considered investing in Chainlink (LINK)?
12. IOTA (MIOTA)
Will MIOTA’s DAG prove to be as innovative as blockchain technology?
MIOTA is perhaps the most innovative crypto in terms of potential everyday use in the future. Imagine if your car could pay for its own fuel or a house that could pay its own utility bills!
They are very forward-thinking, building something ahead of the technology needed for it to even work.
Because of this MIOTA is one of the best cryptos to invest in for 2023. Traders need to wait a while to see MIOTA’s true value, it will take a while for us to reach the point where this crypto is most useful. It may be even decades!
But there is something else we need to mention; MIOTA is also quite controversial in the crypto community. Why? Well, some don’t even really consider it a cryptocurrency as it uses a DAG instead of a blockchain.
A DAG is a ‘Directed Acyclic Graph’, and it works very differently to blockchain technology, which is championed by most cryptocurrencies and seen as the best solution.
DAGs have existed far longer and in some circles are not seen as effective. Traders will have to make that assessment when looking at MIOTA.
Trading Beasts seem optimistic about MIOTA, predicting it to be valued at $1.716 at the highest by December 2023.
- Approximate market cap: $3.2 billion
- Approximate price per coin: $1.17
- Established: 2016
Read our article on MIOTA here.
Have you considered investing in MIOTA (IOTA)?
13. Zcash (ZEC)
Is Zcash the top must-have privacy coin of our time?
For any top crypto trader, it’s always seen as a good idea to have at least one privacy coin in your portfolio. In fact, it’s good to have a bit of everything a bit different in the crypto market.
Privacy coins are particularly seen as important to those who believe you should look out for your personal data, specifically your financial data. It shouldn’t be left lying around on the internet for anyone to find, as is the case with distributed ledgers.
But the issue with privacy coins just like Zcash is that governments and banks really dislike them and there is a misconception that their sole purpose is to subvert the law.
To them, the idea of anonymity in finance is reserved for criminals (‘unless you’re a cocaine dealer, why do you need to hide your identity?’).
Now, here’s what makes Zcash stand out from the competition with other cryptocurrencies also aiming to dominate the privacy sphere - Zcash is working hard to prove that it is legal, and it is not to be used to break the law.
And they’re willing to work with governments to prove that there is absolutely nothing wrong with what their cryptocurrency does, and it’s this effort to work with banks and governments that gives it value.
In fact, as early as 2017, JPMorgan Chase, one of America’s biggest banks, started collaborating with Zcash, showing some favouritism by big institutions.
Experts disagree on what Zcash will likely be valued by the end of 2023. Previsioni Bitcoin predicts the price of Zcash of $240 in 2023, while Trading Beasts estimate a more conservative maximum of $182.
- Approximate market cap: $2.1 billion
- Approximate price per coin: $158
- Established: 2016
Read our article on Zcash here.
Have you considered investing in ZCASH (ZEC)?
14. Litecoin (LTC)
Litecoin is like an old dragon that keeps flaming on!
Litecoin was one of the first-ever altcoins and was seriously big news when it first appeared. But similarly to BCH, Litecoin is a shadow of its former self and has now mostly taken a backseat in the crypto scene.
That said, it’s still one of the top dogs in crypto and there is still money to be made trading Litecoin. It still presents plenty of opportunities and is a major player that should be taken seriously.
According to Digitalcoinprice, Litecoin price predictions for 2023 are between $260 at the highest and $218 at the lowest.
- Approximate market cap: $11,222,626,982
- Approximate price per coin: $168.58
- Established: 2011
Read our article on Litecoin here.
Have you considered investing in Litecoin (LTC)?
15. NEO (NEO)
Don’t forget about one of Ethereum’s biggest and oldest rivals!
Just like Ethereum Classic, it may be wise to allocate a small percentage of your funds for trading to NEO, another player in the realm of creating the next generation of the internet.
And similarly to Tezos, NEO aims to be continuously developed, meaning that it may also stand a chance of outliving its competitors.
But there’s also a lot more going on with NEO - it’s outside the proof of stake vs. proof of work battleground. Instead, it uses a ‘Delegated Byzantine Fault Tolerance’ mechanism, which supposedly is fairly similar to delegated proof of stake.
All this makes NEO a cryptocurrency of interest and potentially the next big cryptocurrency (remember though, patience and a bit of imagination might be necessary!).
Similarly to Ethereum Classic, both The Economy Forecast Agency and Trading Beasts disagree on NEO’s potential with The Economy Forecast Agency giving higher estimates.
Trading Beasts believes that by December 2023, NEO will reach a minimum of $18.34 or a maximum of $26.98. The Economy Forecast Agency meanwhile states that it could be between $25.40 at the lowest and $31.52 at the highest for the same time period.
- Approximate market cap: $1.8 billion
- Approximate price per coin: $26
- Established: 2014
Read our article on NEO here.
Have you considered investing in NEO (NEO)?
So, Which Cryptocurrencies Can Make You Rich In 2023?
Isn’t that the question we all have?
No one can guarantee that you will be rich by investing in any of the cryptocurrencies on this list!
We are not clairvoyant and we certainly do not pretend to be Nostradamus. All cryptocurrencies in our list present great potential and great risk and all are affected by different factors depending on what they are trying to achieve.
The real answer is there is no easy, get-rich-quick scheme here, and cryptocurrency trading has never been one. Everyone who became rich by trading had to wait. No single trade will make you rich and there is a lot of work involved!
Perhaps now, at this current moment, Bitcoin might be the best cryptocurrency to invest in 2023, presenting some of the best opportunities for making a profit this year if the volatility continues.
But putting in a safe amount of your funds for trading in several different coins could be safer, diversifying your risk.
Ideally, you should pick coins you understand and remember that the majority of the coins in this list are still in their infancy, and we need to wait a little longer to see if they have any real value, which is why traders should be patient with them.
Then there is Ethereum, which will continue to transfer to proof of stake in 2023, a process that will take place over several stages. This may boost the cryptocurrency significantly, but the risk of it failing should have traders looking at potential alternatives.
However, you choose to trade, remember to take profits every so often and cut losses.
eToro – The Best Platform To Buy Cryptos
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Conclusion: Where Will Cryptocurrency Go In 2023?
Now that’s just as difficult to answer as the question about making a profit in 2023! In all honesty, we just don’t know yet what 2023 will hold for us.
One thing we can do is look back at previous years and make some general assumptions about what will likely happen.
But there is a problem with this approach - cryptocurrency has only been around for roughly 12 years, which is not long enough to really have an idea of the direction the market will take.
That said, there are a few things we can take as ‘certainties’, if we are willing to call them that at all.
Looking back on previous Bitcoin halvenings, most likely Bitcoin will find a new level of support and resistance and stay at that point till the next halvening which should be at some point in 2024.
With this knowledge, traders can either try to day trade these new levels or hold until the next jump up.
It is also quite likely that Bitcoin will bring with it a wave of interest in other cryptocurrencies as well. This will probably come in three different forms:
- Bitcoin traders expanding more into cryptocurrency. They likely made some money trading Bitcoin and are now looking to reinvest those profits into other cryptocurrencies.
- Newbie traders who are completely new two the crypto scene who now want to jump into the action after seeing the potential.
- Experienced crypto traders who know other cryptocurrencies will be experiencing some volatility and what to profit off that action as well.
Another thing we will most certainly see continuing into 2023 is a range of new cryptocurrencies flowing into the market as we have seen for the last few years. And while this happens, we will likely see more fade from popularity as well, being mentioned less and less.
On top of that, we should keep our eyes peeled for altcoins moving away from the Ethereum network and to their own ‘mainnet’, which is a continuing trend.
Cryptocurrencies that can successfully migrate to their own network will likely surge.
Ready to dive into the crypto market?
The way we trade cryptocurrency in 2023 may be changing
Probably the biggest development we will continue to see in 2023 is the increasing involvement of big institutions in cryptocurrency who have a lot of money to pump into the market.
Their involvement in the crypto market is largely because it has matured immensely since its early days.
This has led traders of all creeds to start seeing cryptocurrency as a serious development that cannot be ignored and should in fact be embraced. And though the market is still volatile, it’s way less risky than a few years ago.
Further to that, the ways in which you can trade cryptocurrency have evolved a lot too. A key example of this is the crypto futures market.
Bitcoin futures started in 2017, and in February 2021 we will see Ethereum Futures, which will definitely boost trading and provide more people with access to crypto trading.
Perhaps not this year, but in the next few years coming, we may see more cryptocurrency trading in the form of futures.
Another key development you watch out for in 2023 is the strong influence of Reddit, with Redditors likely to continue to drive up prices of specific cryptocurrencies in an effort to prevent Wall Street traders and hedge funds from shorting them. (In a sense, they are like the antithesis of the big institutions.)
Just like they did with GameStop stock, they are doing the same with Dogecoin (driving it up to the tenth-largest by market cap!) and they may continue to do so with other cryptocurrencies if they feel like there is a threat to them.
The rise of DeFi (Decentralised Finance) has also really changed the cryptocurrency scene and will likely continue to do so in 2023. Some believe that DeFi may even completely overhaul the way we trade cryptocurrency over the course of the next decade (even Nasdaq does!).
Looking at CoinMarketCap's DeFi section, you will notice the situation is very different there with some altcoins surging while the biggest cryptocurrencies are nowhere to be seen.
In response to the potential threat of DeFi, brokers may eventually start diversifying the cryptocurrencies they offer. Typically, they have been very careful when offering cryptocurrency trading, sticking to the top 10 at the very most.
But as the top 10 has changed significantly over the last few years, it may be wise for them to drop some less favourable coins and add more recent ones.
If they wish to continue drawing in new traders, they may need to take more risks and widen the variety they offer. Only time will tell.
Is the coronavirus fuelling inflation and pumping the price of cryptocurrency?
Perhaps not enough people are talking about it, but one of the primary reasons cryptocurrency, particularly Bitcoin, is increasing in value is because of inflation.
Coronavirus stimulus bills have increased inflation as central banks, such as the US Federal Reserve, print more and more money to provide aid.
Because of this, the purchasing power of the US dollar and many other currencies continues to decline, losing the confidence of many traders who want a safe store of value for their money.
Traders are now putting their profits elsewhere, in this case, Bitcoin, moving away from fiat currency.
Interestingly, according to Investopedia: “Congress is currently in talks to pass another stimulus bill of nearly $1 trillion, aimed to help those suffering from the coronavirus. Should this new stimulus bill be passed it would mean that since the onset of coronavirus, around 50% of the world’s total supply of US dollars will have been printed in 2020”.
More recently, according to Reuters US president Biden has unveiled a $1.9 trillion stimulus plan, almost twice the size of the plan discussed above by Investopedia. Though when this plan will be implemented is unclear.
What does this all mean?
It means that if this stimulus bill goes ahead in the US, there might be another rise in the price of Bitcoin.
Let’s see what happens!
If you remember anything from The Top 15 Cryptocurrencies To Know And Watch In 2023: BTC, ETH, SOL, And More! make it these key points.
- Bitcoin is still the leader and may bring with it a lot of volatility during 2023. After a long period of not too much movement, this is excellent news.
- Ethereum is getting closer and closer to moving to proof of stake. 2023 could be a great time for traders to get involved.
- Some cryptocurrencies have clear use cases while others require patience. Cryptocurrencies for smart contracts are already in operation, while some cryptocurrencies with more grandiose plans will require time before we see their value.