What does the next year hold for crypto? We’ve rounded up predictions from smart people in the space – from the bullish to the skeptical.
Think back to one year ago. Bitcoin traded at around $50,000, you couldn’t watch sports without seeing a crypto advertisement, and you could get rich – or at least it felt that way – by minting a non-fungible token (NFT) of your left nostril.
At the time, who could have predicted the collapse of Celsius Network and Voyager Digital? Or that Matt Damon would become a crypto punchline? Or that the space’s golden child, Sam Bankman-Fried, would turn from Anakin Skywalker to Darth Vader?
This is all preamble to say that there are no crystal balls. Predictions are often wrong. Trends can change on a dime. But then again, perhaps after the FTX-flavored gloom of the last two months, speculating on 2023 is exactly what we need to cleanse the palate.
“As we enter 2023, what happens with crypto funding in Q1 will be critical as to whether we stay in a sustained bear market,” suspects Jamie Burke, CEO and founder of Outlier Ventures. On the one hand, he notes that “the strength of the venture market has persisted, with billions of funding still pouring into the space and high levels of capital waiting to be deployed,” and that “we have seen a record number of applications in our most recent cohorts for 2022.”
Then again, Burke acknowledges that “the venture landscape is undeniably changing,” and that “fund managers going into 2023 are conserving capital” instead of the bull run’s strategy of “spray and pray.” He predicts that next year, many investors will “double down on existing, less risky investments from later-stage companies already showing growth.”
As to what that could mean for the space at large? Or how else crypto might twist and turn in 2023? We’ve rounded up predictions from smart people in the space – from the bullish to the skeptical.
- Epic battles over regulation.
The exact outcome is anyone’s guess, but 2023 could be the year where the clashes over regulation finally reach their climax. “There’s going to be harsh crypto regulation proposed and an epic battle by the community to fight the parts of it that threaten decentralization,” says Laura Shin, host of the “Unchained” podcast.
- Web3 platforms continue to grow.
“Larger macro downturn market conditions should hopefully shift crypto projects away from speculation and more towards utility – one major utility category simply being meaningful, fun, social experiences,” predicts Alex Zhang, the de facto head of Friends with Benefits DAO. He expects this to translate to “more meaningful Web3 social platforms and protocols,” and foresees growth in “interoperable identity, on-chain social graphs, and crypto-abstracted social experiences.”