Here are some forecasts about what to expect in 2023 on the other side as we move into the future.
1. Amount of venture capital funding for cryptocurrencies will decline
The amount of venture capital funding for cryptocurrencies will decline over the first quarter of 2023, but this is not always a negative thing as it is simply normalising to a level where it is reasonable. Because they don’t want to catch a falling knife, investors are waiting for the market to bottom out while simultaneously assessing more general macroeconomic difficulties and the possibility of a global recession. In order to address the gap caused by previous hacks, treasury shortages, regulatory reforms, and exchange collapses, new interoperability (layer 0/bridge), lending, trading, and settlement protocols will also remain to be funded.
2. Web3 anarchist ethos will disappear in 2023
The original Web3 anarchist ethos, which denied the necessity for major brands, will disappear in 2023. Participants will eventually learn that all they have is a token whose only worth derives from user and speculator funds when there is no outside funding from major brands. Instead, initiatives will welcome major brands and the advertising, marketing, and sponsorship funds they bring in order to realize the idea of Web3 (a currency that stands in for microequity) by distributing significant outside funding among actual users. Nonfungible tokens (NFTs) will continue to be the preferred structure for Web2 brands like Nike, Starbucks, and Meta as they experiment with Web3, putting more of an emphasis on user interaction and acquisition than profitability.
3. The way many people have been conceiving community on Web3 is nonsense
People will understand that the way many people have been conceiving community on Web3 is nonsense. When describing “a band of speculators in a Discord sharing a common hope of rapid fortune who abandon the project soon the growth carousel stops rolling,” “community” was frequently just a pretty word. While there will still be some exceptions, such as vibrant decentralized financial communities and online-to-offline decentralized autonomous organizations like LinksDAO, we’ll come to the realization in 2023 that the Web3 ideal of project/community fit was frequently just project/speculator fit. Therefore, we cannot afford to overlook the foundations of true product/market fit.
4. Quality and discovery will be prioritized
Quality and discovery will be prioritized when user acquisition expenses rise and Web3 app development costs decline. Web3 will experience its equivalent of the App Store’s and AdMob’s breakthroughs, facilitating connections between users and developers. Initially, L1s and wallets will contend for this position, but a new player will probably succeed them. Breakthrough Web3 applications in 2023 will resemble the most popular and highest-grossing mobile apps of the early days – simple user interfaces and graphics with simple yet inventive engagement and monetization methods — like Angry Birds in 2009.
Also read: Top 5 Cryptocurrencies In Terms Of Search Volume
5. “Stability” and “Sustainability” in games may lead to an increase in goods
The current tendency toward “stability” and “sustainability” in games, which is partially a result of the bumps of Axie Infinity, may lead to an increase in goods with built-in stability but missing the dynamic boom-and-bust nature of most cryptocurrency speculation. As a result, the player experience will be flat and muted and will resemble a knockoff of popular Web2 video games. Over time, game developers will rediscover the joy of market speculating and work to include it in positive, responsible ways.
6. Web3 will continue to fill a vital niche
With applications that are essentially functioning clones of already-existing enterprises but contain some key blockchain components, Web3 will continue to fill a vital niche. These apps will establish a market segment of customers who want the same traditional core product offering but have some affinity for Web3, much like many early internet companies or mobile companies. They will distinguish themselves mostly through marketing and experience rather than concentrating on the fundamental product offering. A few of them will place moonshot bets on innovations that will actually change paradigms, like Amazon.
7. Blockchain apps will progressively depend on large-capitalization tokens
Blockchain apps will progressively depend on existing, large-capitalization tokens to power token-related functions in order to reduce compliance costs and overhead. Ethereum will continue to postpone the release of its roadmap in 2023, but once it finally introduces sharding to cut down on gas costs, interest in alternative L1s will sharply decline.
8. Stablecoins will be used more frequently outside of the bitcoin capital markets
Stablecoins will be used more frequently outside of the bitcoin capital markets, which will encourage Web3 innovation and wider adoption. Governments and private companies will continue to investigate and develop blockchain technology, and some have announced centralized public infrastructure like digital currencies issued by central banks or marketplace infrastructure.
9. Culture conflicts over cryptocurrency will erupt near the end of 2023
Culture conflicts over cryptocurrency will erupt near the end of 2023, leading up to the United States election cycle. Booms and busts will still occur, including outright fraud, reckless risk-taking, and unintentional hacks (like Wormhole and Terra) (like SafeMoon). More politicians will advocate for cryptocurrency. Domestic business will suffer from the U.S. government’s continued indecision on regulation, though. Even if regulations do emerge, they will likely be patchwork, which might still allow risky projects to get approved.
10. Builders will experience a difficult market in 2023
Builders will experience a difficult market in 2023 as new growth industries, such as NFT profile-picture projects, play-to-earn projects, alternative L1s, etc., begin to emerge outside of the existing dominating narratives. The new narratives will shape the subsequent cycle, and it is envisaged that the new frameworks will promote real consumer utility and adoption, resulting in the addition of several hundred million additional cryptocurrency users and wallets.
Future uncertainties bring opportunities as well, and if big changes do come, those who can adjust swiftly stand to gain.
Also read: Instagram Provides NFTs With A Positive Future Than Twitter Does
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