The 2023 Crypto Investment Outlook Report has been published by OKX Ventures, the investment division of the top cryptocurrency trading platform in the world, OKX. The study presents perspectives on what might be anticipated in the market in 2023 based on both internal and third-party data.
Ethereum Keeps Ruling the Developer Spaces
The ETH merge will deliver improved scalability, security, and environmentally friendly solutions, which will appeal to both new and experienced developers who want to pass these advantages on to their users. Ethereum’s switch from Proof of Work to Proof of Stake has resulted in a 99% reduction in energy consumption. After the Shanghai Upgrade, Danksharding should increase TPS to 100,000+.
The Web 2.5 market will continue to expand. Traditional brands, online businesses, and key opinion leaders (KOLs) have achieved enough success in the Web3 area for Web 2.5 applications to draw a significant number of new consumers to the cryptocurrency market.
We’ll start to see a more user-friendly environment for crypto newcomers to explore Web3 thanks to low-threshold wallets, enhanced Web3 experiences, better access to DApps, the introduction of safe, shared open source solutions, and many more advancements on the way.
Stablecoins with decentralised management ought to resurface. Stablecoins are essential to DeFi protocols and can be used to expand the user base for DeFi, increase liquidity, boost revenue, and boost FDV.
In 2022, the emergence of GMX signalled a breakthrough in acceptance. Derivatives with support for Layer 2 are also anticipated.
In order to gain greater usage, it is anticipated that the NFT business would expand beyond digital art and push into utility applications. Among other advancements, the next NFT innovation cycle is likely to bring about AMM mechanisms, liquidity pools, and NFT financing.
Greater wagers will be made on infrastructure initiatives that are permissionless and decentralised, including new data tools.
Greater prospects for MEV are also brought about by the fragmentation of liquidity brought about by Layer 2 solutions, app-chains, and multichains like Cosmos. After danksharding, Flashbot’s extraction on Ethereum will operate entirely differently, potentially resulting in a new MEV environment. In 2023, the sector might anticipate additional MEV advancements.
One of the primary areas of emphasis for 2023 is expected to be on-chain data, tracking tools, and asset recovery technologies. In addition to supporting Web3 security governance, on-chain data can be used to track missing property, keep track of on-chain activity, and monitor Web3 user behaviour. Institutions are taking note of this field because it has great possibilities.