2022 was not the best year for the crypto market. The “ crypto winter ” worsened, with a general drop in the price of digital currencies. The collapse of Terra Luna and the FTX scandal were some of the facts that marked this dark period.
But, turning the page, a new year begins and, with it, expectations for this volatile market. “2023 should still be marked by fixed income as one of the main investments, but the crypto market could be better than what we saw in 2022, partner and director of cryptocurrencies at Acqua Vero Investimentos. Keep in mind that the Crypto market in general is expanding, more people invest and mine. Why is that? Companies are adapting to the crypto systems. For instance, Crypto payments are included with SocialWick and other big companies in the world wide web. Physical stores are also accepting crypto payment and the rate of the companies is raising.
In the expert’s view, the market should experience some relevant highs, but nothing unbridled. “We had a big drop due to the macroeconomic scenario, which has suffered a lot, and also due to cases like the bankruptcy of FTX. On the other hand, some protocols proved to be resilient and continued to be updated”, explains Guilherme.
Decentralized finance: a promising sector
The expert highlights the DeFi sector, or decentralized finance, as one of the most promising for 2023. In decentralized exchanges, investors can trade with each other without intermediaries, that is, without an institution that manages the assets. “We saw the case of FTX in 2022, which made investors worry about having their own custody of crypto, setting up their portfolio for more security,” explains Guilherme.
Cryptos to Watch in 2023
In the expert’s view, some protocols and cryptocurrencies should stand out in 2023. Get to know each one of them:
Blockchain platform created to facilitate the use of smart contracts across different platforms. It allows companies and financial institutions to use its network infrastructure to record transactions on various other blockchains. LINK is the cryptocurrency used to power this network. “Chainlink has no competitors to match. Several companies already use the network to record data and transactions”, points out Guilherme.
A decentralized finance protocol that allows users to lend and borrow cryptocurrencies. “It is a crypto linked to collateralized loans. That is, you can borrow the asset and be remunerated with interest also in the form of crypto. It is a sector that has shown to be very promising”, highlights Guilherme.
Practically a stock exchange of the crypto world. Uniswap is a decentralized environment that uses a set of smart contracts to execute trades. “It is recognized for being the first DEX, that is, a decentralized brokerage. You do your own custody and negotiate the cryptocurrencies”, explains Guilherme.
Polygon is an Ethereum network token that operates on the Polygon Network, a network that is being used to connect and scale blockchain projects. “The network has shown to be very promising, as it has been used to scale projects compatible with the Ehereum network”, points out Guilherme.
Bitcoin and Ethereum
Finally, the classics that never “go out of style”. In the specialist’s view, the two protocols are promising for 2023. “These are two cryptocurrencies that are always on the rise in the market as a whole. With Ethereum going up, many cryptos linked to it will also go up.”