Top Cryptocurrencies to Watch in 2023 – Forbes Australia Advisor

A prolonged downturn in the cryptocurrency market can be challenging for investors. Still, others see it as a prime opportunity to buy high-quality digital currencies at discounted prices. Of course, there are no guarantees, but those who can keep calm and invest during market turmoil can potentially reap the biggest returns when the trend eventually reverses.

Here are some cryptocurrencies to watch out for in 2023:

RocketPool

With Ethereum’s upcoming Shanghai upgrade enabling staking ETH payouts, the narrative for liquid derivatives investing is strong in 2023. Rocket Pool is an open source decentralized Ethereum 2.0 investment platform designed to make staking more accessible and efficient for individual and institutional users . Rocket Pool’s goal is to make staking more accessible, lower barriers to entry, and increase the decentralization of the Ethereum network.

In the past, many ETH investors were unable to invest due to the minimum 32 ETH requirement. RocketPool allows many small stakers to pool their resources to create one larger staking node, which can support the network and earn rewards.

“Lido, another liquid investment derivatives protocol, has so far dominated market share in the sector,” says Martin.

“However, Ethereum enthusiasts would prefer to see an increase in competition to improve the decentralization of the network. 29 node operators have been hand-picked by Lido, while RocketPool’s core value is to ensure that those who wish to participate in Ethereum’s security can do so without technical expertise or high capital requirements.”

RocketPool appears to be well positioned for growth throughout 2023 as the trend of investors staking their ETH heats up.

GMX

GMX is a decentralized exchange specializing in spot and margin trading with low swap fees and minimal price impact when opening and closing trades. It uses a multi-asset proprietary pool that generates revenue for liquidity providers through market making, swap fees and leveraged trading. This pool allows liquidity providers to provide funds to liquidity trading platforms and in return receive revenue from traders using the platform.

GMX consistently ranks among the top five apps and blockchains for most daily fees generated. This implies that people willingly pay to use the platform and shows the excellent market suitability of bartering products.

“Unlike most cryptoassets that fell 70-90% from 2022 to 2023, GMX ended the year with growth as a result of distribution of fee income and users looking for alternative places to influence instead of the collapse of FTX,” he says Martin.

GMX is in a good position to continue its good results in 2023 and is worth keeping an eye on.

Frax Finance

Frax Finance is a multi-party decentralized financial platform that has a lot to offer until 2023. Frax is a revolutionary fractional stablecoin protocol. Currently available on Ethereum and 12 other blockchain networks, the ultimate goal of the Frax protocol is to create a highly scalable, decentralized, algorithm-based currency that can work in conjunction with fixed-supply digital assets like Bitcoin.

The Frax ecosystem has multiple coins, including USD stablecoins, management tokens, and a liquid stake-ETH derivative.

As Martin said: “Frax’s staked ETH derivative, sfrxETH, is the fastest growing decentralized alternative to Lid’s stETH in terms of percentage market share. The attractiveness of the invested ETH derivative comes down to two primary factors; yield and liquidity. Frax currently offers the highest yielding derivative and has a war chest to boost liquidity, putting it in a prime position to continue gaining market share through 2023.”

In addition, stablecoins are one of the key components of the digital asset market, and Frax’s innovative offering could be well positioned to take advantage of this fact. Coupled with the multi-layered nature of the project and the dedicated team, this project is definitely one to watch throughout the year.

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