Will cryptocurrency and non-fungible token (NFT) markets ever recover? It’s a valid question after everything that’s happened in the past year. Prices have plummeted, scams have run rampant, and the overall market has taken a nosedive.
By the end of November 2022, the market had decreased by 70 % from its previous peak, which was in 2021. The FTX crash even pushed the market dip lower, which was a big blow to many in the industry.
The cryptocurrency and NFT markets show potential for recovery in 2023.
More people, including governments and financial institutions, are beginning to understand cryptocurrencies, blockchain technology, and its potential applications
How crypto and NFT market work
Cryptocurrencies and Non-Fungible Tokens (NFTs) are still in their early developmental stages. Crypto is currently used as a way to transfer value, and NFTs are used to represent unique digital assets. Crypto and NFTs provide a more secure and efficient way to transfer value and assets.
Here are some reasons why crypto and the NFT market will reclaim their glory in 2023.
- The past performance of the crypto market is proof enough 2023 will be a good year
If you look at the past performance of the crypto market, you’ll see that 2023 is shaping up to be a good year for it.
According to exploding topics stats, 24 new cryptocurrencies are created weekly. Also, Metav.rs reports that NFTs sales volume had risen from 15 000 in 2017 to around 50,000 in 2022. This shows that there is still tremendous potential for growth in the crypto market.
There have been a number of swings in the market over the past few years, but each time it has eventually recovered. Here are some statistics according to Forbes.
- In 2018, after the meteoric run-up to BTC fell 84% to $3,000 from $20,000,
- In November 2020, Bitcoin took a turn to nearly $17,000 in November 2020, before spiking even higher.
- In May 2021, BTC fell 50% from a high and recovered nearly $69,000 later that year
The market has survived hiccups during the past few years and there’s no reason to believe that trend won’t continue. Despite the current downturn, the future looks bright for both crypto and NFTs.
There is always a bull market that has followed every bitcoin bear market. Even if there are massive losses due to the current bear markets, it’s only a matter of time before crypto and NFT markets recover.
Bitcoin is particularly resilient and is likely to bounce back first. As we know, bitcoin has hit new all-time highs in the past. Given its decentralized nature, bitcoin will always have an advantage over other cryptocurrencies due to its global acceptance, no single point of failure, and reliability.
With these features baked into the protocol of bitcoin and other cryptos and governments worldwide starting to embrace digital assets, there’s a strong chance that crypto and NFT prices will recover. You can always buy bitcoin as it offers good investment grounds.
3. Web3 will become a big thing.
Web3 is a term used to describe the third incarnation of the web. It is poised to become the next big thing in crypto and NFT. It’s all about creating a decentralized platform where anyone can securely buy, sell, and trade digital assets. It’s powered by blockchain, which not only makes it secure but also transparent.
This means that transactions will be faster, cheaper, and more secure. This is great news for investors as it eliminates fraud and scams in the market, allowing them to buy into digital assets confidently.
With web3 becoming more prevalent in 2023, investors can expect an increase in liquidity as more people turn to crypto and NFT investments for their portfolios. And since blockchain-based digital assets are limited by nature, there will be more demand than ever before.
The global NFT market is expected to grow from $2.5 billion in 2020 to $15.9 billion by 2025. This shows that there is a lot of potential for growth in the NFT market as well.
As the market recovers, many brands and businesses will likely switch their focus from creating cool NFTs to launching loyalty and rewards programs on the blockchain. This will allow them to tap into new customers and give their existing customers a new way to reward their loyalty. Brands will be pushing NFT adoption in 2023.
By building on the blockchain, companies can offer promotions and discounts that are fully automated and trustless. Customers can monitor their rewards balance in real time without relying on third-party verification systems.
Additionally, these loyalty programs can be completely customized, allowing customers unprecedented flexibility – meaning more customers can access discounts specifically tailored for them.
Crypto and NFT technologies are emerging as one of the most innovative ways businesses build customer relationships. The ability of companies to launch loyalty programs on the blockchain is being seen as one of the major drivers of recovery in 2023.
5. Growing crypto and blockchain use
More businesses and people are embracing blockchain technology. The use of blockchain technology will continue to increase in the future. This will increase the demand for cryptocurrencies and NFTs.
Blockchain is revolutionizing how people do business, providing a faster and more secure way for companies to transact. And with more companies using blockchain daily, it’s only natural that this would impact the crypto and NFT markets.
Also, blockchain technology is versatile and can be used to create smart contracts, track digital assets, execute transactions, and much more. This gives users the confidence they need when investing in these markets, as robust systems are now in place to ensure that transactions are secure and transparent.
As people become increasingly aware of the potential offered by blockchain technology, more people will be willing to invest in crypto and NFTs – which in turn will lead to a rebound in these markets by 2023.
It is evident that the cryptocurrency and NFT market will recover sooner or later. The infrastructure for cryptocurrencies and NFTs is becoming more sophisticated, and governments and financial institutions are starting to take cryptocurrencies and NFTs seriously.
The industry is also maturing, and people are starting to see the value in digital assets. They are looking for ways to invest their money, and crypto and NFTs provide a unique opportunity to do so.
So, keep a close eye on the market, and don’t miss the boat when the recovery finally happens.
Well, some of the best options would be Ethereum, Litecoin, and Bitcoin. Ethereum is a great choice as it is currently the most popular blockchain platform for developers to build their applications on.
Litecoin is also worth considering due to its low transaction fees and quick transaction speeds. Lastly, Bitcoin remains a strong option and could be more attractive than ever this year due to its decentralization and potential for growth.