- How will 2023 stand against last year’s economic and political punches?
- What coin can make the best run?
- Big names’ prevalence or unknown prospects rise.
The year 2022 was a rough one for crypto, with more than $1.3 trillion evaporating off from the market and Bitcoin seeing its price downslide more than 60%. Trust in crypto has been eroded, and the prices of digital assets have mirrored the stock market’s losses due to the current high inflation and interest rate hikes.
The market has been quaked by a shockwave of collapses in the industry, Terra Luna’s stablecoin UST crash to the bankruptcy of a major crypto exchange FTX and ongoing fraud and financial manipulation saga, macroeconomic ice age, the war in Ukraine, and tension around Taiwan.
As 2023 kicks off, investors tend to believe that it could be another volatile year in the crypto space. Those who made crypto price predictions in 2021 really missed the mark and lost their cred dramatically. How to get faith back into crypto, and can DeFi show incredible profits as it used to? Read on to find out!
Our content is posted for informational purposes only. The text does not provide financial advice.
Crypto Forecast for 2023
Many analysts agree that 2023 will be very volatile and may bring surprises. The world macroeconomic winter will stay for an unknown period of time, the global political situation remains tense, Covid has not yet been completely eliminated, and confidence in crypto is undermined by the collapse and scandals of major crypto exchanges.
Realities for 2023 are closely dependent on the Fed’s stance and rates. If Federal Reserve continues to tighten it all up and withdraw money out of the system by raising rates, then 2023 could continue to undervalue all cryptos.
The explanation is simple: Bitcoin correlates with the interest rate, and all other altcoins depend on Bitcoin dominating the market. If the Federal Reserve were to reconsider its policies and suspend the interest rate and uncontrolled money printing, it would make crypto more attractive to investors. The technology has already proven its recession-proof and capability of generating big returns, but the risks involved are now even more apparent.
Although Bitcoin’s software is seen as outdated by many experts, analysts agree that its value will continue to increase over the course of 2023. Despite its shortcomings in terms of speed, scalability, environmental awareness, and other price formation factors, Bitcoin is still expected to experience positive growth in the coming year.
The next currency that can show a significant upswing and gain momentum in 2023 is Ethereum. It is the platform where most new projects and altcoins are built and bloom.
Binance Coin and Solana (the fastest platform with smart contacts) grow at lightning speed. To rank and rate those bad boys, you need to remember that they remain quite stable despite all the market roller-coasters and are ready to burst into the new year with renewed vigor.
Which Cryptos Can Surprise Us in 2023?
Anyone keeping a close eye on the crypto market in 2022 barely keeps their shirt on to see which coin might take a shot in the new year.
For now, Bitcoin remains the crowned leader.
The lion’s share of investors breathes the belief that history tends to repeat itself and market swings can send Bitcoin skyward, betting on a return to the 40k mark.
There are a number of nuances that may accompany the growth or fall of crypto. First of all, these are global political and economic difficulties. The draconic tightening of US legislation may incur a fall, but there are no prerequisites for 2023. Of course, it is mandatory to stay tuned and monitor the changes to protect your pockets.
Cryptocoins to Consider Buying in 2023
Before you decide to invest in digital gold, there are several factors to consider:
- Market capitalization. The market capitalization of a cryptocurrency is a measure of its value. It is calculated by multiplying the total supply of coins by the current market price. Cryptocurrencies with a higher market capitalization tend to be more stable and have a lower risk of price volatility.
- Utility. Consider the purpose of the cryptocurrency and whether it has real-world use cases. A cryptocurrency with a robust utility is more likely to have a higher demand, which can drive up its price.
- Adoption. Look at the level of adoption of the coin. Cryptocurrencies that are widely accepted and used by merchants and consumers are more likely to have a stable price.
- Risk. All investments carry some level of risk, and cryptocurrencies are no exception. Consider the level of risk you are willing to take on when choosing a cryptocurrency to invest in.
- Team. Look into the team behind the cryptocurrency. A strong and experienced team can increase the chances of the cryptocurrency’s success.
- Regulations. Consider the regulatory environment in which the cryptocurrency operates. Cryptocurrencies that operate in countries with favorable regulations are more likely to be stable and have a lower risk of price volatility.
It’s also important to diversify your crypto portfolio by investing in a variety of cryptocurrencies rather than just one, to spread the risk. Finally, always do your own research and due diligence before investing in any cryptocurrency.
Ethereum is a true competitor to Bitcoin. The cryptocurrency can take off in 2023. There are several reasons for that:
- Introduction of new protocols for using the system.
- Increase in the speed of transactions.
This crypto is quite interesting for IT workers. Various startups in the field of development and innovation are looking for stable, acceptable coins with decent speed and convenience. Future events will also take a toll on Ethereum.
Litecoin is also worth considering. The coin has undergone its third halving cycle, which can result in a price boom in the second half of 2023. It has huge potential with the previous price being $350 per coin. However, the nearest goals are still $100 and $150 per coin.
Atom deserves special attention. It is a very impulsive coin and has a highly-ranked ecosystem known as Cosmos. This allows developers to enable staking on their base immediately. This is especially true at a time when everyone wants to have a passive income. For these reasons, during the next bull run, we should anticipate $20.
Cardano is potentially the most profitable cryptocurrency for 2023. In principle, it is an excellent option for a long-term investment because it shows excellent growth in the process of long-term work. This crypto has the ability to make payments for real goods and services. We believe it can hit $2.87 in 2023.
Fan coins deserve attention too. Shiba Inu is a popular one. As practice has shown, with various news events, coins rise and fall very quickly. However, do not forget that the risks here are much greater, even though the coins have gone through more than one cycle.
Dogecoin is a rather promising coin, which is highly trusted by users, and its low price attracts a large number of traders. This can possibly lead to its significant growth. It is actively used as a means of payment. Investors can use it both in the short term and long term. As Elon Musk is one of the main enthusiasts of Dogecoin, it can possibly rise to the $1 mark in 2023.
Polygon is one of the simplest coins on the market. When taking into account the crypto prediction for 2023, you need to consider this asset definitely. Its feature is low transaction fees, which is impossible to mine, but it is easy to buy through exchanges. All of the innovations happening in the Polygon ecosystem can affect the coin positively in 2023, mainly a partnership with Starbucks.
Binance Coin is becoming quite promising and actively developing in the market. The coin is used to buy other cryptocurrencies, you can pay for goods and services in stores. Binance coin is also reliably protected from inflation, and there are no particular difficulties with its purchase. Therefore we think that it will be a good idea to invest in this coin.
XRP, ADA, DOT, TRX
This is a group of various coins which, in theory, are not expensive but have been on the market for quite a long time. This probably adds some doubt, though each of these coins has its own community.
Bitcoin is a legend in the cryptocurrency market. With this asset, you can top up your investment portfolio. It is believed that Bitcoin is a long-term investment, and even more so that it is accepted as the official currency in some countries. We think that for the 2023 crypto prices prediction, Bitcoin is likely to stay dominant, only if Ethereum will not steal a lead.
One of the main reasons for the growing price of Bitcoin is its wide acceptance by the majority of companies. The process will enhance further in 2023.
The Bottom Line
So far, it is difficult to plan which cryptocurrency will take off in 2023. As for crypto prediction for 2023, each of the cryptocurrencies mentioned has the potential and opportunity to grow and increase.
By showing an active interest in cryptocurrencies, delving into their ecosystems, and investing in coins, you can create and develop content and acquaint people with cryptocurrency, thereby reinforcing its strength and stability. But it is also natural to approach such investment thoughtfully, soberly, with a thorough analysis of the market and existing cryptocurrencies, rationally, and invest only what you can really lose without negative consequences.
Which Crypto Will Double in 2023?
Polygon is one of the main contenders for doubling in 2023. The announcement of a new loyalty program for Starbucks and developments in NFTs appears to affect the value of Polygon.
Which Crypto Will Grow Most in 2023?
Bitcoin is likely to lead the next bull market in 2023. The BTC price had a downfall in 2022 but is likely to increase again next year. One of the reasons for the rise in the price of the asset will be its wide distribution in the world as a means of payment.
Which Crypto Has the Biggest Potential?
It’s not a secret that Ethereum has huge potential. The possibility of the flippening is slim, yet Ethereum could still gain considerable traction and cement its position. We tend to believe that in 2023 Ethereum could demonstrate more intense growth than Bitcoin.
What Is the Cheapest Crypto with the Most Potential?
Those looking for the cheapest crypto with the most potential should definitely consider Cardano. Its popularity is rising and looks promising for investors.