Current Crypto Market Snapshot
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Current Crypto Market Snapshot
It's hard to believe that we are now in 2023 and with it a new year for Crypto Currency and the decentralised world with one of the biggest stories in the crypto world continuing to be the continued institutional adoption of cryptocurrencies.
More and more Major companies have announced significant purchases of Bitcoin, and institutional investors buying up more Bitcoin through one of the biggest Crypto Winters on record with the belief in the long-term potential of digital assets. This institutional interest is being driven by a growing recognition of the potential of cryptocurrencies to serve as a hedge against inflation, as well as by the increasing ease of purchasing and holding digital assets.
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Explosive Decentralised Finance (De-Fi) Growth
Another major trend in the crypto world has been the growth of decentralized finance (DeFi) protocols. These protocols allow for the creation of decentralized financial applications on blockchain networks, such as lending and borrowing platforms, stablecoins, and prediction markets. The total value locked in DeFi protocols has grown dramatically in recent months, reaching over $US44.1 Billion a 28% increase at time of writing.
There have also been several major regulatory developments in the crypto space. The U.S. Securities and Exchange Commission (SEC) has continued to take a cautious approach to cryptocurrency regulation, with a particular focus on education. Most recently releasing a suite of educational materials and Investor Alert notices notifying potential investors of current market scams.
The crypto market has also seen a lot of volatility in recent months. The price of Bitcoin, the largest and most well-known cryptocurrency, reached the first 2023 all-time high of over $US21,564 this week before falling back to around $US20,500 an impressive outcome. The price of Ethereum, the second-largest cryptocurrency by market capitalisation, has also seen significant fluctuations. Including our very own Hive which saw a 40% increase before retracting 20% at time of writing.
Interoperability
The trend of interoperability has continued to emerge in the crypto sector, allowing for the exchange of data and value between different blockchain networks. This has been led by Cosmos or better known as Atom, which allow for the creation of multi-chain ecosystems. Interoperability has the potential to greatly increase the utility of blockchain networks and the overall adoption of cryptocurrencies.
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Despite suffering a 5% loss in value at time of writing Atom experienced some significant uptrends as the price of Bitcoin increased peaking at $US13.34. The question on everyone's lips this year is if Atom token will emerge as the fourth top chain trailing BNB. Given it's potential to bring together multiple blockchains and streamline mainstream adoption, it is very much a top contender.
The crypto sector has seen continued institutional adoption, growth in decentralised finance, regulatory developments and market volatility. While these are some of the major events and trends in the crypto sector, it is important to note that the crypto market is still recovering from the collapse of the Terra (Luna) Network and the flow on effects from FTX collapse.
As the FTX debacle continues to play out in the media and it's leaders currently left unscathed unless the SEC and US authorities take a hard approach and jail it's leaders, potential future investors might be thinking twice before jumping in as they may be left feeling their investments aren't adequately safeguarded from potential fraudsters.
Image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
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The truth is that I think that smart traders and investors should pay more attention to what large institutional investors do than what they or anyone else can say about the market.
By this I mean that the best guide we can have to know that the future of Bitcoin and many other cryptocurrencies is really promising is the fact, which you well mentioned, that more and more institutions are currently buying Bitcoin; despite still being in the worst crypto winter on record to date.
So we must always remember that more important than what can be said in the market, is what the market is doing and what is happening in the market. Bitcoin, the way I see it, will hit the current All Time High on record this year, and quite possibly we will see a new All Time High before the end of 2023; but the year is still very young, so we must not anticipate events so much and be patient every step of the way.
I liked reading your post; the theme is very interesting. Regards.
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Correct, the growth in adoption isn't slowing down despite price volatility. Today's cents are tomorrows dollars.
I think institutional investors getting into the space despite the crypto winter is a good sign because it shows that there's something 'tangible' to this space and a potential to its growth. Also, Retail investors usually follow the trail of institutional investors so more of them will trust and hop into the crypto bandwagon. 2023's ride will be okay-ish, maybe we'll experience summer along the way.
I have a feeling this crypto "summer" will be a mover especially considering the current economic climate.
Yay! 🤗
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Volatility, thy name is really cryptocurrency! LOL :)
I am indeed happy to see life in the market.
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