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Binance Research analysts are eyeing a number of developments that could have a major impact on the cryptocurrency market in 2023.
According to a recently published report by Binance Research (“2022 Full Year Review and 2023 Theme”), in 2023, macroeconomics will be the driver of risky asset returns. Central bank policy, global GDP statistics, and recession risk will determine whether macro factors are a tailwind or a headwind for cryptocurrencies. According to Binance Research, as the cryptocurrency market develops and more institutional investors enter the space, there could be a stronger relationship between traditional and cryptocurrency markets.
Another of their predictions is that real-world assets will be used as growth drivers for DeFi and NFT initiatives. Tokenizing assets or accepting real-world assets as collateral are two potential integration points for her with physical assets.
Regarding Ethereum’s upcoming Shangahi upgrade, they expect interest in staking to increase as the date for withdrawing staked ETH approaches. While this may be useful for liquid staking methods, it can also cause fluctuations in market share. A shift in market share to the streaming protocol is likely.
Binance Research is also of the opinion that the usefulness of NFTs is essential for their future widespread acceptance. Further innovations in areas such as integration with blockchain games, collaboration with Web2 Enterprise, and other real-world use cases are expected to drive the next phase of adoption and go beyond simple image NFTs. .
Finally, Binance Research believes cryptocurrency regulation will become clearer. Regulatory skepticism is justified, and cryptocurrencies will struggle to regain public trust. However, the blockchain industry will benefit from greater regulatory certainty in the long term. An example of this is a government creating a clear regulatory framework for initial coin offerings (ICOs). This provides a safer environment for investors.
Regarding the 2022 review, the report said there will be a lot of volatility due to various developments and changes in the market. Blockchain has entered the market. Layer 2 scaling solutions experienced significant growth, but the DeFi sector as a whole faced declining value. The NFT market got off to a strong start, but slowed down in the second half of the year. The blockchain gaming industry continued to grow, but there were signs of a slowdown and waning interest in the concept of virtual worlds. Policy debates were fueled by multiple events that year, with a surge in venture capital investment and fundraising activity.
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Featured image via Pixabay
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