Hashdex has published its Cryptocurrency investment outlook for 2023. The report provides the Hashdex opinions on the future of cryptocurrencies, the lessons of 2022 and what investors should watch out for next year.
“Despite the dramatic challenges of 2022, we view the past year as anything but negative for cryptocurrencies”, said Marcelo Sampaio, co-founder and CEO of Hashdex. “While we cannot deny that recent events have hurt the industry, we are optimistic about the long-term investment case, maintain that recent problems can be corrected, and believe that the underlying technology is intact and improving.”, he continued.
In the report, Hashdex experts provide insight into the top issues plaguing the cryptocurrency space and what to watch out for next year. The following are the seven most important issues that Hashdex has identified and believes investors should pay attention in 2023:
The investment case for Bitcoin grows stronger. Despite its poor price performance, Hashdex believes that 2022 was a year of strengthening bitcoin fundamentals and that its long-term investment case remains as strong as ever. By 2023, Hashdex expects Bitcoin to continue to evolve on several fronts, including progress in environmental discussions, with the emergence of guidelines bridging government agendas and the mining industry. Particularly in the United States, the company is also confident that bitcoin’s regulatory clarity relative to other crypto assets will continue to drive its adoption by institutional investors.
Regulatory clarity will accelerate after FTX. In 2023, Hashdex believes regulatory advances will be made to reflect the reality that crypto assets are here to stay, and strong public policy is needed to ensure investors are protected from bad actors. The company expects that, in the coming year, the focus will be on regulation that requires the segregation of trading and custody service providers, as well as greater market transparency. Many positive regulatory initiatives from Latin America to Asia are likely to progress in 2023, which may have a more limited impact on cryptocurrency adoption and demand, but also contributes to a positive global regulatory outlook for 2023.
Blue Chip DeFi Fundamentals Strengthen. Hashdex points out that the failed players in 2022 were CeFi institutions (centralized finance), while blue chip DeFi protocols performed extremely well, proving that transparent, auditable, and highly predictable smart contracts can be much more efficient in stressful situations. times. The company believes that top-tier DeFi protocols with strong revenues will get stronger based on their well-designed tokennomics, as many of them seek new business models. Other areas where Hashdex expects growth include the deployment of DeFi services in scaling solutions, further diversification of net staking alternatives, and an increasing role for Bitcoin as more DeFi solutions on its blockchain gain ground.
ethereum. Despite the significant reduction in the price of ETH, 2022 was one of the most important years in the history of Ethereum with the effective transition to Proof of Stake (the fusion). In 2023, Hashdex will keep an eye on how ether demand will be influenced by new developments in layer 2 solutions, such as accumulations, and also whether Ether gains further institutional interest as data on its post-deployment power consumption becomes available. Fusion become more available.
Scalability strengthens the blockchain. The challenges of this year have not slowed down developments in the smart contract platform niche. 2023 promises to be the year when the “old guard” of blockchains i.e. Bitcoin and Ethereum become increasingly modular and scalable without compromising security, thanks to stack-based solutions. Ultimately, while new architectures and governance models for bridges are not out of the question, Hashdex believes that the tone for 2023 should revolve around developing and deploying these scaling solutions, with its incentive models being one of the many problems that need to be answered.
Strategic partnerships can bring NFTs to a broader audience. The past year in digital culture disrupted expectations as many believed that blockchain gaming would be a strong use case to drive adoption of major cryptocurrencies. In 2023, Hashdex believes that the key trends to watch more closely are (i) top gaming companies offering highly successful blockchain-based products, a key factor for adoption optimism, and (ii) the birth of social media platforms that can use decentralized infrastructure.
Crypto will benefit from more macro conditions”common“. Crypto is no longer a small niche investment: is an asset class with a significant portion of institutional investors exposed. For better or worse, cryptocurrencies will react to the same risk aversion or liquidity preference shocks as traditional risk assets, as cryptocurrencies will not be disassociated from traditional risk assets. Finally, Hashdex anticipates that 2023 will be a remarkable year for crypto assets, provided macro conditions stop weighing on the asset class.
Mr. Sampaio added: “For crypto investment to thrive, our industry must set the bar higher when it comes to standards for trading counterparties, custodians, and other service providers. This is something Hashdex was founded on and takes very seriously – which is why we have spent the last five years building the infrastructure and processes necessary to protect our investors. Ensuring client assets are safe remains our top priority and nothing has changed with our commitment to our values and our mission – providing investors with access to cryptocurrency through simple, secure and regulated products.”.
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