The bullish and bearish movements developed by the cryptocurrency and digital asset market were a global shock regarding digital investments.
The collapse of DeFi projects, the fraudulent management of exchange platforms, and the constant scandals generated by the bankruptcy of various cryptographic companies make the year that has just ended one of the most turbulent. Click link if you are interested in crypto trading.
An atypical crypto winter
Digital currencies have been characterized as elements of the digital financial market whose ability to operate in a decentralized manner makes them much more attractive when investing.
That is why, since financial institutions or third parties do not control them, the costs per transaction decrease significantly.
During this crypto winter phase that the market has gone through, a set of atypical situations have arisen from the previous bearish stages in which digital currencies have been affected.
Among the events that stand out is the complex economic and financial situation surrounding the world’s powerful countries, before which the Federal Reserve had to take part, making decisions that undoubtedly caused irreversible effects on the price of digital assets.
On the other hand, there is a situation that never before has macroeconomic factors such as inflation affected digital currencies, thus making evident the possible vulnerability of the digital financial market to some macroeconomic aspects of the traditional financial market.
However, this was not all that tarnished the crypto ecosystem; the collapse of platforms such as FTX also generated a pessimistic feeling in active users and institutional investors, which moved the market drastically.
Pessimism strengthens the Blockchain.
The fluctuations of the crypto market left many without flavors in the users and investors of digital assets, but this is not limited to the base technology that supports them; it is where the Blockchain was strengthened.
This situation is demonstrated after the constant attempts to regulate cryptocurrencies, where blockchain technology was endorsed and considered by many institutions as a technological resource with incredible opportunities and benefits for the traditional market, from production to marketing and finance.
For this reason, many traditional financial and banking institutions are searching for the technological update of their platforms, the Blockchain being the primary tool to achieve it.
The trends in Blockchain for this 2023
It is essential to highlight that to define the possible trends that will determine the path of use and management of blockchain technology, there are specific criteria to consider, among which the following stand out:
- Investment Perspective
It is directly related to the evolution of the prices of digital currencies, of which gradual growth is expected due to the downward trend that decreased to 60% of the cost of crypto assets, being conservative before issuing opinions that could be contrary to the events that unfold.
- Technological advances
Due to the evolution of the crypto ecosystem where The Merge was recently created, evidencing the technological capabilities of the Blockchain where efficiency and security in transactions are the main objectives, thus achieving the interoperability of the various chains.
- Adoption by institutions and companies of blockchain technology
Due to the speed of operations and their security, it is becoming increasingly attractive for international and transnational investment banks to have crypto-active investment products among their investment products. It is there that the main institutional initiatives have focused on considering the Blockchain as support technology.
By 2023, entrepreneurs, users, and consumers will massively adopt digital assets. Everything points to the tokenization of traditional assets and DeFi.
- The appearance of new products
This aspect refers to popular NFTs where ownership and digital identity could become the engine of the digital economy and finance.
- Creation of regulatory instruments
The creation of norms and laws regulating the operations, companies, and exchanges carried out through digital currencies could generate greater confidence and performance in cryptographic investments.
All this is as long as the main objectives of guaranteeing, preserving, and validating solvency and the possibility of carrying out audits by third parties are met.
The uncertainty regarding the stability of the market and the exit from the crypto winter does not stop since many users are still waiting for what could happen in the crypto asset market.