Binance Research on Key Topics for Crypto in 2023

Binance Research analysts are closely monitoring a number of events that could have a significant impact on the cryptocurrency market in 2023.

In 2023, according to a recently published report (“2022 Full Year View and 2023 Themes”) from Binance Research, macroeconomics will be the driver of risk asset returns. Whether macro factors act as tailwinds or headwinds for crypto will be determined by central bank policy, global GDP statistics and recession risks. According to Binance Research, there may be a tighter relationship between traditional and crypto markets as the crypto market evolves and more institutional players enter the field.

Another of their predictions is that real-world assets will be used as a growth driver for DeFi and NFT initiatives. Asset tokenization or accepting real-world assets as collateral are two potential integration points with physical assets.

Given Ethereum’s upcoming Shangahi upgrade, they anticipate more investment interest as the day to withdraw invested ETH approaches. This can be helpful for current investment methods, but is also likely to cause fluctuations in market share. An example of this could be a shift in market share from Ethereum 2.0 to other liquid investment protocols that offer better returns or user experience.

Binance Research also believes that the utility of NFTs will be crucial to their widespread adoption in the future. More innovation in areas such as integrations with blockchain games, collaboration with Web2 enterprises, and other real-world use cases is expected to drive the next phase of adoption and move beyond simple image NFTs.

Lastly, Binance Research believes greater regulatory clarity is coming for cryptocurrencies. The skepticism of regulators makes sense, and it will be difficult for cryptocurrencies to regain public trust. However, the blockchain industry would benefit from increased regulatory security in the long term. An example of this could be a government creating a clear regulatory framework for initial coin offerings (ICOs), which would ensure a safer environment for investors.

As for their 2022 outlook, the report notes that there has been a lot of volatility, with various developments and changes in the market. Ethereum adopted a new validation method called Proof-of-Stake and new L1 blockchains, such as Aptos, entered the market. Layer 2 scaling solutions saw significant growth, but the overall DeFi sector faced a decline in value. The NFT market got off to a good start but slowed down later in the year. The blockchain gaming industry continued to grow, but there were signs of slowing down and less interest in the virtual world concept. The policy debate was fueled by a number of events in the year, and there was also a surge in venture capital investment and fundraising activity.

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