Ever since the NFT surge of November 2021, investors have had their eyes on the cryptocurrency landscape, and many have diversified their portfolios with controversial coins. Given the estimated $2 trillion market cap drop for crypto in 2022, the big question on everyone’s mind is, will we see a recovery? To find out the answer to this and more 2023 cryptocurrency predictions, continue reading.
A Bitcoin Recovery?
Bitcoin is used by investors as an indicator of the wider crypto market’s worth, which is why we discuss the original cryptocurrency when talking about market recovery. Naturally, there are no guarantees when it comes to a value increase in crypto, but we believe that 2023 will see cryptocurrencies begin to recover once more, and here’s why:
- Institutions play the Bitcoin game. The largest custodial bank in the world, Bank of New York Mellon, notes that it will begin offering Bitcoins services due to demand.
- Fed rate hikes are predicted to ease. Aggressive Fed rate hikes in 2022 made investors turn away from crypto. If rates begin to stabilize in 2023, interest will pivot back into assets like Bitcoin.
- Tech giants are hitting Bitcoin. Global giant Mastercard will begin working with Paxos to support the provision of Bitcoin within the traditional banking system.
As mentioned, nothing is guaranteed, but there’s a clear framework to support the eventual crypto value increase to take place in 2023. If you don’t already have crypto in your portfolio, head over to OKX, where you can hold crypto for benefits and easily convert your assets back to fiat money.
Read here : A Simple, Detailed Explanation Of Crypto Wallets For Every Crypto Newbie
XRP Makes a Return
Since 2017, XRP has seen a significant crash in value, but that’s due to a change in 2023 because the stage is set for an increase. When compared to other altcoins, XRP has shown its worth and reliability to investors, making it a reasonable investment to add to your crypto portfolio. According to Investing Haven, once XRP hits a price point of 1.666, it should increase to 3 and then 9 USD value in no time.
A Focus on Layer1
Depending on where you search, you will get a different definition for layer1. For example, Coinmarketcap notes that a layer1 blockchain is a series of solutions designed to improve the infrastructure itself, making it more reliable. Whereas, if you head to The Defiant, you’ll find that layer1 blockchains include Ethereum, Blockchain, Solana, and Binance Smart Chain, and any project built on top is referred to as layer2.
Taking The Defiant’s definition, experts suggest that layer1 blockchains will outperform layer2 in 2023, with projects coming along for the ride to see a value increase. The reason for this is mainstream adoption, which focuses on tried and tested blockchain infrastructures.
After a rocky 2022, it’s expected that the crypto market will begin to recover in 2023. There are many contributing factors largely resulting from the mainstream institutional adoption of Bitcoin assets. If you haven’t added cryptocurrencies to your portfolio, research the landscape now to ride the next market cap explosion – it’s a matter of when, not if.