Crypto Trends That Have Shaped 2022 - What is 2023 Cooking in the Oven?

We have witnessed so many events and changes in the crypto marketplace that it is hard to remember all of them.

The first half of 2022 was a tough period for the crypto market, while the second half has been full of promises. While no one knows for sure, cryptocurrencies and any form of digital assets are believed to play a crucial role in the future economy, so it only remains to be seen. For anyone who just entered the crypto space, it might seem intimidating. And it is only normal - there are so many things to learn. Besides, it is still not a 100 percent-fully-explored terrain, which makes the situation even more complicated. But if you are patient with your research, your chance to familiarise yourself with and even master this domain can increase significantly.

The crypto space is intriguing, so let us explore some of the most influential trends that have shaped 2022 and are forecasted for 2023. After all, the latter is just three months away. This will help you have a clearer idea of this unpredictable market and further develop robust trading or investing strategies.

Innovative Concepts - DeFi and NFTs

DeFi, or decentralised finance, is a recently-launched concept that has gained popularity rapidly. This emerging financial technology is still in its development phase, but 2022 has been a promising year so far. DeFi is all about secure distributed ledgers that are to bring significant changes in the crypto space, its main goal being to transform the centralised economic system by means of the so-called “smart contracts”. DeFi eliminates the intervention of centralised financial institutions like brokerages and banks in financial transactions or any type of financial services and thus makes this entire process run smoothly for users.

Ethereum is the first blockchain to support DeFi projects due to its smart contract capabilities. In fact, there is a significant number of Ethereum-based projects that have seen success, including Polygon (MATIC). Initially, all DeFi projects were released on Ethereum, as there were no other options available for creators, but since the concept has surged in popularity, it is expected that other platforms will support DeFi applications, too.

NFTs or non-fungible tokens are about to become the foundation of the virtual economy, as increasingly more individuals have started to explore their potential. The beauty of the NFT market is that it provides people with something that, if not tangible, is, at least, felt like that - rights to both physical and virtual property. This includes everything from artwork, music, and video clips to virtual real estate and JPEGs. Besides, each NFT is a unique cryptographic token, so no one can possess a token that is already in someone else’s wallet or exchange it like-for-like.

More Regulation and Government Involvement

2022 gave rise to a clearer regulatory framework, and more and more people believe that cryptocurrencies are going to be the norm. Governments have established setting guidelines and regulations to make digital currencies more secure and safer for investors. In the U.S., for example, the president signed a bipartisan infrastructure bill according to which there shall be crypto tax reporting provisions. These provisions help the IRS monitor crypto activity among American users more easily. Such regulations have also become mandatory and necessary for investors to keep accurate records of any losses or capital gains and adequately report crypto transactions.

A more accurate and stricter regulation will also be helpful in tracking and deterring criminal activity. Just because blockchain is equipped with algorithms that provide users with state-of-the-art security, it does not mean that there are no malicious actors.

One thing is for sure - regulation could be a game-changer for crypto traders and investors alike, as it may influence the crypto price, which is already volatile. So, it is advisable to inform about these regulations and learn how to buy cryptocurrency before jumping into purchasing.

Crypto Is to Be Adopted Widely

El Salvador’s recognition of Bitcoin as a legal tender in 2021 has increased crypto adoption. The Central African Republic also embraced Bitcoin and announced it would adopt it on April 27 this year. The move has generated a lot of buzz, all the more so since the government stated that it would secure an independent economic future for the nation. The CAR is the second county on the globe to legalise Bitcoin, but 2023 and the years to come promise to be historical, so expect to see more worldwide crypto adoption. Bitcoin may indeed be accepted universally, as countries like Panama, Cuba, and Panama may be next to adopt it as legal tender.

Major companies across several industries adopted cryptocurrency as a payment form, including AMC, PayPal, Tesla, and Square. Amazon may also accept cryptocurrency sooner than expected. In late 2021 Whatsapp also released a pilot scheme that allows people to send crypto payments in seconds. In what manner this could influence the digital payment space remains to be seen. Maybe 2023 will shed light on aspects that have remained unclear in 2022 and previous years.

Jobs and Business Opportunities for Crypto Experts

As the crypto space is rapidly expanding, it is only normal for an increased need for crypto and blockchain experts. Blockchain has started to be increasingly more explored by large corporations, as they got to see its potential, but blockchain technology is obviously not to be understood by everyone, so proficient and skilful individuals are demanded to work in this sector. Jobs such as DeFi researcher, cryptography engineer, and software developer may all require some crypto knowledge, so if you are one of those crypto enthusiasts that read everything about virtual coins, NFTs, DeFi, or smart contracts, you may try your luck and apply for a job in this field. With Web 3.0 on the rise, expect to see more professions involving blockchain technologies, decentralised finance, and token-based economics.

We hope you have a clearer idea of the crypto market and predictions for 2023 so that you can invest with faith that crypto is not going anywhere, because it will not.