“Cryptocurrency will change market structures, and maybe even the architecture of the internet itself.” — Abigail Johnson
As the 2022 bear run loses steam, the crypto space in India (and across the globe) is buzzing with newfound interest. With thousands of cryptos vying for the top spot, the market capitalization of crypto stood at $849 billion as of November 2022. Now, in March 2023, crypto enthusiasts continue to actively search for emerging crypto trends. In this post, we list the top 5 crypto trends in 2023 we’re looking out for.
Crypto trends in 2023: Increasing crypto regulations
India enacted a new crypto tax policy in 2022. The policy imposed a 30% tax on crypto profits. Further, the policy imposed a 1% tax deduction at source (TDS) on all crypto transactions. While the Union Budget of 2023 didn’t shed much light on the regulatory status of crypto in India, our leadership intends to pursue the development of standard operating procedures for crypto during India’s G20 presidency, which will last until November 30, 2023. With the digital rupee pilot out already, we can expect the government to gain better clarity on how to regulate the Indian crypto space better in 2023.
Crypto trends in 2023: NFT tokenization
NFT tokenization is the next crypto trend in 2023 we have on our list! The hype surrounding this innovation isn’t going away, with the volume of the non-fungible token (NFT) sales increasing year after year. The Global Non-fungible Token Market is expected to be worth $97.6 billion by 2028. It is expected to grow at a 31.6% CAGR during the forecast period.
Many well-known brands are attempting to gain a competitive advantage by developing their own NFTs. Adidas, for example, released a collection of 30,000 NFTs in 2022. Nike, Ubisoft, Coca-Cola, Pepsi, Clinique, and Gucci are among the well-known companies that have already released their own NFTs.
The increasing implementation of digitized processes and the digital handling of all sensitive data can be attributed to the industry’s growth. The rise in simple and complex digital payments has fueled industry expansion. The significance of tokenization extends far beyond investment access; it may also facilitate new investing models. Quentin Tarantino recently auctioned off seven original scenes from his cult film Pulp Fiction as NFTs. These NFTs also include a handwritten text of the film’s first scripts as well as the director’s comments. NFT marketplaces also address intellectual property issues. Currently, content creators are frequently required to sign waivers of rights to companies or audio streaming platforms. Furthermore, it is difficult to track the sequential distribution of artworks.
Crypto trends in 2023: More investments in stablecoins
The 2022 crypto bear run brought about an uncertain crypto winter for investors, what with the FTX fiasco, the Terra-LUNA death spiral, and more unfortunate events. Many investors drove themselves out of the market with FUD (fear, uncertainty, and doubt) spurring them on, and while in 2023 the crypto markets have been taking small but steady steps towards the next rally, many newer investors are yet to gain back their faith in crypto.
What these investors have been doing instead is seeking shelter in the less variable stablecoins (such as USDT, USDC, and DAI). Their durability as compared to the classic volatility of crypto like Bitcoin and Ethereum sure makes them a less risky asset class for many investors, and investments in stablecoins is a trend we may continue seeing throughout 2023.
Crypto trends in 2023: Increasing DeFi use cases
Since its inception, Decentralized Finance, or DeFi, has been a market disruptor. You are the custodian of your own crypto funds with DeFi protocols. Crypto wallets such as MetaMask, Gnosis Safe, and Argent enable you to interact with decentralized applications to do everything from buying, selling and transferring crypto to earning interest on your digital assets in a simple and secure manner.
Furthermore, DeFi enables a new type of data analytics. DeFi provides access to a larger data pool due to its transparent and decentralized nature. You need the right data and analytics tools to manage risks in your business to make informed and calculated risk decisions. DeFi takes care of that for its customers. The TVL (Total Value Locked) of crypto covered by DeFi smart contracts, has risen from $2 billion to $15 billion in 2022.
DeFi development has recently become mainstream, capturing the attention of global tech titans and market leaders. Making an entry into the DeFi landscape now can be a wise decision for emerging DeFi enthusiasts because this space is thriving at a rapid pace. So DeFi will surely be one of the major crypto trends in 2023 to watch out for.
Crypto Trends in 2023: More meme crypto to come
As of the first quarter of 2023, over 200 meme crypto are in circulation, which sure is a surprise, because no one had expected meme currencies to get very far even after DOGE started gaining momentum. As of 2023, one of the biggest crypto trends just might be the arrival of more meme cryptos to the global virtual assets scene.
Crypto Trends in 2023: More countries to roll out CBDCs
As per a report from Atlantic Council, about 60 countries around the world are currently in an advanced stage of CBDC development. India is pretty far ahead of big names like the UK and the US already, with our CBDC-R and CBDC-W pilots having been launched. China, Jamaica, and Nigeria are some other prominent countries to launch their own CBDCs, and as one of the biggest crypto trends in 2023, we can expect more and more countries to launch CBDC pilots.
Conclusion
So the above was our outlook on what we can expect in terms of crypto trends in 2023 in India. Having proper knowledge about crypto trading and market fluctuation will help you decide on the right investment. Choosing a reliable crypto trading platform like Giottus can further help your crypto trading journey.
The future of crypto will have swings, but the prominent crypto trends in 2023 all seem to be positive, and the time is ripe for exploring the crypto space.
