Cryptocurrency is becoming increasingly popular every day, and it’s no surprise why. With its revolutionary technology and promise to bring greater transparency, security, and efficiency to a variety of processes worldwide, crypto is quickly making its way into mainstream use.
In this article, we’ll go over the most anticipated cryptocurrency trends, so you’ll know what to watch out for and where to invest in crypto in 2023. Prepare yourself, because if these predictions turn out to be accurate, then we’re about to experience a revolution unlike anything ever seen before.
Ethereum Will Surpass Bitcoin in Market Value
In 2023, experts predict that Ethereum will defy the odds and reach a market value even higher than Bitcoin’s, if only for a fleeting moment in time.
Predicting the future of Bitcoin and Ethereum can be quite tricky, given that they are usually highly correlated. They tend to both rise or fall together in response to news or data-driven updates. But with stock markets on a downward spiral and an impending economic recession looming, we may soon start seeing more individualization among cryptocurrencies as well.
Bitcoin is one of the most well-known cryptocurrencies, and with its 21 million token limit, it has an undeniable allure to investors. But, if we take a closer look at Bitcoin’s utility, we’ll notice there is still some room for improvement. For instance, the average number of transactions completed daily in Bitcoin has remained stagnant over the past seven years.
By contrast, Ethereum recorded 40,000 transactions daily in 2016 and around 700,000 transactions daily in 2019. Furthermore, it has regularly surpassed one million transactions per day for the past two years.
To put it simply, the basics point to Ethereum being a far more valuable cryptocurrency than Bitcoin.
Meme Tokens Will Decrease in Price
During 2021, Dogecoin and Shiba Inu coins were the trendiest currencies in the crypto space. Dogecoin experienced an impressive surge of more than 20,000% from its original value prior to Elon Musk’s famous appearance on Saturday Night Live. On the other hand, Shiba Inu had a remarkable growth of up to 121 million percent in just ten months. It was truly a historic moment for this alt-currency.
Unfortunately, both meme coins have plummeted around 90% since reaching their highest points. And this depressing pattern looks to continue throughout 2023 for several reasons.
At its core, Shiba Inu and Dogecoin are payment coins with no unique traits or features distinguishing them from any other digital currency. Even more importantly, the Shiba Inu and Dogecoin tokens lack any competitive advantages or unique features.
History is not kind to those digital currencies that experience a sudden, dramatic boom in their value. In fact, most of these payment coins have actually gone on to drop by up to 99% from their peak values, with Bitcoin being the notable exception. Without anything truly unique about SHIB and DOGE, both are forecasted for losses upward of 50%, making them risky investments as we move into 2023.
El Salvador Must Give Up on Experimenting With Bitcoin
September 2021 had the promise of being a triumphant moment for cryptocurrency, as El Salvador became the first nation to officially recognize Bitcoin and require businesses to accept it as a valid currency. Unfortunately though, in less than 16 months since President Nayib Bukele gave his seal of approval, its use has proven itself to be a failure.
To begin, most Salvadorans have yet to use Bitcoin as a payment option due to the lack of access they have to traditional financial services. According to gathered data, only 24.4% had used it for payments, and two-thirds viewed its rollout as unsuccessful so far.
Despite receiving $450 million in loans, El Salvador is still on the brink of a potential debt default within just a few years. Just recently, it seemed like an unavoidable default was looming for January 2023, yet these new funds have allowed Bukele to avert this impending crisis.
To make matters worse, the price of Bitcoin has plummeted by more than 60% since El Salvador opted to invest public funds in it. With their asset reserves rapidly depleting, if they want financial aid then El Salvador’s leaders must reconsider their strategy and choose a different option as long as Bitcoin remains bearish.
Bottom Line
With digital assets becoming more popular and 2023 looks like it will be a big year for crypto, make sure to keep an eye on the top cryptocurrency predictions. Doing your own research is always best but following along with what experts are saying can help you narrow down your choices and make better investment decisions.