Binance Research on key cryptocurrency themes in 2023

Binance Research analysts are keeping a close eye on a number of developments that could significantly impact the cryptocurrency market in 2023.

In 2023, according to a recently released report (“2022 Full-Year Review and 2023 Themes”) by Binance Research, the macroeconomy will be the driver of returns for risky assets. Whether macro factors operate as a tailwind or headwind for cryptocurrencies will be determined by central bank policy, global GDP statistics, and recession risks. According to Binance Research, there may be a stronger relationship between traditional and cryptocurrency markets as the cryptocurrency market develops and more institutional players enter the fray.

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

As for Ethereum’s upcoming Shangahi update, they predict more interest in staking as the day to withdraw staked ETH approaches. This can be useful for liquid staking 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 staking protocols that offer better yields or user experience.

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

Finally, Binance Research believes that more regulatory clarity for cryptocurrency is on the way. The skepticism of regulators makes sense and it will be difficult for cryptocurrencies to regain public trust. However, the blockchain industry would benefit from more regulatory certainty in the long run. An example of this could be a government creating a clear regulatory framework for initial coin offerings (ICOs), which would provide a safer environment for investors.

As for their 2022 review, the report says there was a lot of volatility, with various developments and changes in the market. Ethereum has adopted a new validation method called Proof-of-Stake and new L1 blockchains, such as Aptos, have entered the market. Level 2 scalability solutions have experienced significant growth, but the entire DeFi industry has experienced a decline in value. The NFT market had a good start but slowed down over the course of the year. The blockchain gaming industry has continued to grow, but there were indications of a slowdown and less interest in the concept of the virtual world. The political debate was fueled by multiple events throughout the year and there was a spike in venture capital investment and fundraising activity.

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