Cryptocurrency Predictions 2023 (Exciting Predictions)
With all that cryptocurrencies have achieved so far, what will the future of cryptocurrencies be like this year? This article will provide you with the top 2023 cryptocurrency predictions.
The year 2022 was not an easy year for the digital currency market, as the conversation between those interested and dealers in the digital currency market only revolves around analyzes and speculation of Bitcoin performance and the future of cryptocurrencies. In fact, talk about the performance and future of digital currencies is getting more and more attention year after year.
4 exciting predictions for cryptocurrency in 2023
1- An internal collapse of the Shiba Inu digital currency
The prediction that most experts and analysts feel very confident in its validity in the near future of currencies in 2022 is that the meme currencies, led by SHIB, DOGE and FLOKI ENO, will explode internally and will expire.
Social media has made these meme coins top the industry and become the hottest cryptocurrency in the market, especially in 2021. At one point, the Shiba Inu had gained over 121,000,000% year-on-year, with Dogecoin surging by 27,000% in early November 2020 and early May 2021. Meanwhile, Floki posted more “modest” four-digit gains in 2021.
What these digital currencies have the most in common is a lack of competitive advantages. For example, the Shiba Inu is nothing more than an ERC-20 token built on the Ethereum blockchain. This means that its system also suffers from the same problems of high fees and delayed transactions as the Ethereum network itself. The same applies to Dogecoin, which charges high fees compared to other, more common payment currencies.
These meme coins also lack an element of usefulness, as they are not based on any project that aims to solve a real problem in the real world. According to Cryptwerk Online Business Directory, a total of only 392 global merchants SHIB. Moreover, cryptocurrency exchanges that only accept Inu as payment account for more than 10% of this number, which means that 392 is a very high number for a Shiba Inu. Floki Inu has a similar utility in the real world.
Even history has it that the big payout coins with massive gains in the short term often know price reversals of 93% or 99%.
If there is one very clear piece of advice investors should take in 2022 in the cryptocurrency space, it is to steer clear of Shiba Inu meme coins that offer nothing of substance to the world.
2- The market will undergo a comprehensive correction in 2022
Since the cryptocurrency space is primarily driven by the hope and expectations of its communities, rather than anything else tangible, investors would be wise to expect a fairly large correction in 2022.
First of all, history shows that setbacks are common. The total value of all cryptocurrencies has jumped upwards of more than 1,500% in the past 21 months. Despite this, the market did not witness any significant increase in the adoption of blockchain technology or the adoption of a means of payment in digital currencies except for Bitcoin, and this gives this currency the advantage of being legal in El Salvador.
This means that the digital market has not been able to separate from the stock market during periods of volatility. Despite investors viewing cryptocurrencies as their own unique entities, or even as a hedge against the stock market, the data clearly shows that when the stock market corrects lower, the cryptocurrency market follows. This is worrisome given that there are several factors that indicate a double-digit stock market correction may be on the horizon.
Investors should also be concerned about margin use in the cryptocurrency space. With some cryptocurrency exchanges offering their clients up to 100x leverage on their cash position, one quick move in the wrong direction can result in huge losses.
3- Metaverse coins will flourish in 2022
If investors had to pick one niche in the cryptocurrency market, which is expected to remain hot for at least the first half of 2022, any cryptocurrency project related to metaverse would be suitable.
The truth is, it’s unlikely that we’ll see the metaverse world get very liquid anytime soon. In fact, no one is sure if metaverse projects will be driven by companies like Meta Platforms, or if virtual reality platforms built on decentralized blockchains will dominate the digital landscape.
However, one thing that is clear here is that cryptocurrency investors are willing to chase coins that are more metaverse related. For example, SAND recently jumped nearly 16,500% in 2021 while MANA only made a 4,300% jump this year.
What makes these projects interesting is that, unlike other traditional game projects that give players opportunities to create and develop the character and virtual world in games, they give players the right to acquire ownership of digital lands within their Sandbox and Decentraland space in the form of Non-Fungible Tokens (NFTs). ). These NFTs can be used in these virtual worlds as a form of currency, or they can be monetized on the platform’s own marketplace. Playing to earn these tokens could be a driving force for metaverse projects like SAND and MANA throughout 2022.
4- Bitcoin is legal in more countries
Bitcoin received a huge boost in 2021 when El Salvador, the first country to do so, introduced it as legal tender in September of the same year. The world’s largest digital currency by market capitalization has enjoyed a number of first-mover advantages over the past decade, but its recognition by this country as legal tender was a real achievement and an important milestone in its history.
In 2022, it is very likely that we will see at least one country, if not more, declare Bitcoin as legal tender. The reason for this is fairly simple, as inflation is starting to rise in most countries and all over the world. As many governments around the world begin printing money and implementing spending plans designed to keep their economies above water during the prolonged pandemic, the prices of goods and services are rising. Bitcoin is now seen as a potential hedge against potential hyperinflation.
In the same vein, some other countries will want to use El Salvador’s currency as a blueprint when offering Bitcoin for themselves. While Bitcoin was touted as the currency of the future, its introduction as legal tender in El Salvador suffered from a host of technical glitches as well as several attempted thefts. Other countries will be able to learn from the mistakes of El Salvador, which may make them more able to adopt this digital currency and consider it legal tender.
Now that we know the most important expectations of digital currencies in 2022 and what this space can know in terms of major events, let us move on to identifying 4 new digital currencies that are expected to have a good future this year.
Digital currency predictions: 4 currencies are likely to rise
With nearly 16,000 digital assets now in circulation, figuring out which new cryptocurrencies can be profitable and rewarding to invest in is a bit tricky and complicated. So, in this article, we will help you to know the 4 most important digital currencies that have a future in 2022:
1. Luckyblock coin
Luckyblock coin is the best cryptocurrency to buy and invest in 2022, as it is on a solid project looking to revolutionize the global lottery industry.
The protocol would like to achieve this by decentralizing the lottery process based on blockchain technology. The main goal here is to enable anyone to play lottery games from home without the need for a central operator.
To ensure that Luckyblock provides players with high levels of fairness and legality, all gaming functions are governed by smart contracts. This ensures that every lottery game will be real and fair, with no actors internal or external to the platform gaining the power to manipulate the outcome.
Luckyblock is still in pre-launch stage. Once the launch ends in early 2022, the coin will be available for trading on various major digital exchanges.
2. Terra currency
When considering the best new cryptocurrencies that could constitute a profitable investment in 2022, it is a good idea to consider cryptocurrencies that aim to provide some protection from market fluctuations for their investors, especially declines.
When the value of bitcoin goes down for example, this usually sends the digital market down with it. However, a number of digital assets have the potential to outperform bear markets. Among these assets we find the Terra currency.
In recent days, Bitcoin has only gained 0.34% over the previous seven days, and Terra has managed to gain more than 52%.
For those unfamiliar with this project, the Terra protocol aims to install its own stable Terra coins. This is because its value is linked to the value of real fiat currencies such as the dollar.
Those who use the Terra platform can earn rewards by betting or voting on the future of the protocol through the governance principle.
3. Yearn.finance coin
Another digital project that must be taken into consideration is the Yearn.finance currency project, which knows a strong upward price momentum with the beginning of 2022. While the Bitcoin currency experienced some stagnation during the previous week, the Yearn.finance currency witnessed an increase of more than 86% during the same period.
Over the course of 2021, the returns received by the initial investors of this decentralized project were more appropriate. Those who invested in this currency at the beginning of 2021 will have paid amounts in the range of $ 22,000, and after five months they will have achieved no less than 320% of the gains.
For those not yet familiar with the Yearn.finance coin project, it is a protocol specialized in the field of digital finance. It takes on the task of bringing together borrowers and investors to create a fully decentralized finance system.
4. PancakeSwap coin
PancakeSwap could be a profitable and rewarding investment in 2022. PancakeSwap is a decentralized exchange that was launched in late 2020. This exchange allows users to buy and sell digital currencies without having to go through a third party.
New stock exchanges have more chances of becoming the preferred stock exchange for investors. PancakeSwap has already managed to garner a lot of attention, gaining millions of traders since its launch with billions of dollars in locked liquidity.
Since its launch, PancakeSwap has entered several additional markets such as coin stacking and farming.
This coin hit highs of $44 in mid-2021, but has since retreated to the $12 level towards the end of the year. However, this level provides an excellent entry opportunity for those who are considering buying this digital currency.
How to choose the best digital currencies
As an investor looking for above-average earnings, this makes the task of choosing the right coin more difficult. Although we have tried to help you get some of the options available, you should be able to choose among them based on your own research and analysis skills. Here are some of the criteria you should look at when choosing the best cryptocurrency for your investment:
The first thing you should look at and make sure to evaluate it is the project on which the digital currency is based. For example, in the case of Luckyblock, the project offers something that has not been offered in the digital world before – decentralization of the global lottery industry. By choosing cryptocurrencies with strong and viable digital projects, you are giving yourself as an investor with a strong, unique and viable concept, you are giving yourself the best possible chance of choosing the next big thing.
In a similar nature to stocks, buying a cryptocurrency as early as possible will often allow you to make your purchase at a very favorable price. For example, in the case of Pancakeswap, those who invested in the project in late 2020 would have paid just $1.10 per coin while those who entered the market in mid-2021 would have paid more than $44 per coin. This is why it is a good idea to invest in cryptocurrencies with strong projects in their early stages.
Another important consideration to make while choosing the best new cryptocurrency to invest in is the team behind it. After all, many digital projects have an anonymous team and this should be a red flag for investors.
The 2022 cryptocurrency forecasts in this article represent only the opinion of financial institutions and analysts, and should not be construed as an offer, invitation, or recommendation to buy, or as investment advice.
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