A sustained decline in the cryptocurrency market can be a challenge for investors. However, others see it as a great opportunity to purchase high-quality digital currencies at discounted prices. There are no guarantees, of course, but those who manage to stay calm and invest during market turmoil can potentially see the greatest returns when the trend finally reverses.
Here are some cryptocurrencies to watch for in 2023:
With the upcoming Shanghai Upgrade of Ethereum allowing withdrawals of staked ETH, the narrative for liquid staking derivatives is strong in 2023. Rocket Pool is an open source decentralized Ethereum 2.0 staking platform designed to make the more accessible and efficient staking for individual and institutional users. Rocket Pool’s goal is to make staking more accessible, lower barriers to entry, and increase decentralization of the Ethereum network.
In the past, many ETH investors were unable to stake due to the minimum requirement of 32 ETH. RocketPool allows many small stakers to pool their resources to create a single larger staking node, which can support the network and earn rewards.
“Lido, another derivative of liquid staking protocol, has so far dominated the market share in the industry,” says Martin.
“However, Ethereum enthusiasts would rather see more competition to improve network decentralization. Lido handpicked 29 node operators, while RocketPool’s core value proposition is to ensure that those who wish to participate in the security of Ethereum can do so without technical expertise or high capital requirements.”
RocketPool looks well positioned to grow throughout 2023 as the trend towards investors staking their ETH heats up.
GMX is a decentralized exchange specializing in spot and margin trading with low swap fees and minimal price impact when opening and closing trades. Uses a proprietary multi-asset pool that generates revenue for liquidity providers through market making, swap fees and leverage trading. This pool allows liquidity providers to provide assets to the platform for liquidity trading and, in return, receive income from traders using the platform.
GMX consistently ranks in the top five applications and blockchains for most daily commissions generated. This implies that people willingly pay to use the platform and it shows the great product-market suitable for exchange.
“Unlike most crypto assets which declined 70-90% from 2022 to 2023, GMX finished the year up due to fee revenue distribution and users looking for alternative venues for leverage instead of the collapse of FTX,” says Martin.
GMX is well positioned to continue to perform well into 2023 and is well worth keeping an eye on.
Frax Finance is a multi-faceted decentralized financial platform with a lot to offer in 2023. Frax is a revolutionary fractional stablecoin protocol. Currently accessible 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 US dollar stablecoins, governance tokens, and a staked liquid derivative ETH.
As Martin put it: “Frax’s staked-ETH derivative, sfrxETH, is the fastest growing decentralized alternative to Lido’s stETH in terms of percentage market share. The attractiveness of a staked ETH derivative boils down to two main factors; yield and liquidity. Frax currently offers the highest yielding derivative and has a war chest to boost liquidity, which puts it in a prime position to continue to capture market share throughout 2023.”
Furthermore, stablecoins are a major component of the digital asset market and Frax’s innovative offering could be well positioned to take advantage of this fact. Coupled with the multifaceted nature of the project and busy team, this project is definitely one to watch throughout the year.