There is so much fixation over Bitcoin and cryptocurrency prices. If investors looked deeper into crypto world, they will likely see a bouquet of positives. Image Credit: Shutterstock

From chaotic falls to enhanced adoption, 2022 was memorable for those of us in the digital asset space. Since then, the world of blockchain, crypto and Web3 continues to go through a wringer of unpredictable events.

Blockchain technology is entering a definitive period of growth. With so many promising projects and companies that have thrived irrespective of the bear market, new use cases, investments and applications are emerging in areas such as smart contracts, Decentralized Finance (DeFi), NFTs and more.

Let’s explore some of the possibilities for crypto's upcoming boom in what could potentially be one of its most exciting years yet.

Crypto ETF approval

The US Securities and Exchange Commission (SEC) ruling—approving crypto exchange-traded funds (ETFs)—is a monumental milestone. This new way of investing in the emerging asset class brings greater participation from institutional investors, who previously had limited access to gain direct exposure.

Crypto ETFs represent an attractive opportunity for those seeking diversification while minimizing the risks associated with direct investment or participating through existing platforms.

Bitcoin withstanding pressure

Against all expectations, Bitcoin continues to demonstrate resilience in the face of extreme financial pressure. As awareness of digital currencies rises, more businesses are likely to embrace Bitcoin as a legal form of payment. The impressive success of Bitcoin shows that there is still huge potential for this asset class to make substantial financial gains in the future.

Ethereum 2.0 nears full potential

Ethereum 2.0, the long-awaited successor of the Ethereum blockchain, is gaining traction. By incorporating proof-of-stake consensus mechanism and many other tweaks to the original blockchain network, Ethereum 2.0 aims to restore confidence in this powerful fintech infrastructure.

As the deployment of this new Ethereum variant is well on its way, cryptocurrency investors and blockchain enthusiasts are eager to witness its potential impact on scalability, decentralization, and, most importantly, its speed of transactions performance—a crucial aspect that has often been an issue with earlier incarnations. 2023 will also be the year for Ethereum to complete its next upgrade, which is known as Sharding.

Central bank created digital currencies could well represent the big moment the crypto universe was waiting for. Image Credit: Shutterstock

Institutional investors

Institutional investors are increasingly recognizing the comparative attractiveness of cryptocurrency investments, with recent momentum demonstrating that this trend is not likely to slow anytime soon.

NFTs becoming ubiquitous

NFTs are tokenizing anything and everything imaginable. This development is bringing unimaginable potential to the markets, deeply impacting how we transact. It will be interesting to see how traditional Web2 industries will be utilizing tokenization to actively be part of and innovate in the Web3 space.

NFTs have the capacity to allow buyers and sellers to confirm ownership more securely while enabling new monetization models around digital assets, thus sparking tremendous excitement in both emerging start-ups and established organizations.

Web3 coming out from underground

The emergence of Web3 from the shadows of the web is offering exciting possibilities to the average user. These technologies are helping users explore, create, and monetize in new ways by providing access to previously unusable data and interconnecting various digital ecosystems. With transactions taking place more securely, quickly and cost-effectively than ever before, no wonder that more and more people will turn to Web3 as a viable means for their digital needs.

Crypto innovation intensifies

In the ever-evolving cyber arms race, corporations are constantly developing and rolling out enhanced features as they vie for dominance in this lucrative market. Collaboration between relevant stakeholders is essential if we were to secure digital assets against escalating threats.

DApps expanding presence across industries

The underlying technology of decentralized applications, commonly referred to as DApp, continues to gain traction in various industries. This platform has the capability to streamline tasks within the infrastructure of businesses, across sectors such as finance and media, resulting in cost reduction and increased efficiency. As organizations explore this digital option that offers increased autonomy, it will be interesting to see what impact DApp will have on industry developments.

Regulatory action

With the cryptocurrency industry reaching a valuation of $850 billion, regulatory action looms large over digital assets. Overseeing this asset class must not only protect investor interests but also allow innovation to drive global finance into the future. This has proven tricky in some jurisdictions, with China outright banning crypto-related activities.

However, regulators in many other parts of the world are striking a balance between creating appropriate frameworks and enabling the growth of this sector. Crypto pioneers now strongly advocate for international collaboration and consistent regulations to help bring digital assets into mainstream financial systems.

Stablecoins and CBDCs making their mark

Stablecoins and Central Bank Digital Currencies (CBDCs) are making their presence felt within the growing cryptocurrency ecosystem. Traditional finance organizations now have the option to participate in digital-native exchanges meant to capitalize on the same compliance and security requirements previously unavailable through decentralization.

This capability not only stands to bring more transparency into financial service institutions but also has the potential to connect them with other markets, fostering better access to capital and resources for communities that have historically been excluded from traditional systems.