2022 has not been the best year for the digital currency industry. We had a very long crypto winter during which the crypto market faced many challenges, including the crash of Terra and FTX.
Macroeconomic factors have further complicated the situation for the crypto and equity markets: we have seen record inflation, unprecedented measures by the Federal Reserve and other central banks to contain it, and we are currently facing the possibility rising from a major recession.
If interest rates remain high in 2023, the crypto industry will continue to struggle. But there are still cryptocurrencies in which it could be worth investing.
Ethereum | ETH
The price of Ethereum (ETH) has seen many ups and downs in 2022. It has fallen about two-thirds from its peak of around $3,700 in January so far. Even the long-awaited upgrade to Ethereum 2.0 failed to reverse this trend. However, the upgrade known as The Merge remains very significant for the network, which has moved from using the energy-consuming Proof-of-Work (PoW) consensus algorithm to Proof-of -Stake (PoS). This transition also set the stage for further upgrades on the Ethereum network.
The price crash has caused the total value of deposits on Ethereum platforms to drop from over $150 billion to less than $50 billion. Non-fungible token (NFT) trading volume has also fallen from its January high.
Nonetheless, Ethereum remains an important cryptocurrency to watch in 2023 due to its strong market share in the blockchain industry. Although Ethereum faces strong competition from projects like Avalanche, Solana, and Tron, no other cryptocurrency has been able to take Ether’s place so far.
A likely catalyst for Ethereum price in 2023 will be upcoming network upgrades. The first upgrade is dubbed Guangzhou and aims to allow users to withdraw their profits from ETH staking. Additionally, developers will work on increasing throughput through partitioning technology.
On this page we explain how to buy Ethereum.
Chain link | LINK
Chainlink is another interesting cryptocurrency that potentially offers an attractive investment opportunity. It is the flagship project in the field of oracle services for smart contract platforms. So, it is an infrastructure-level product that helps developers integrate different real-time data on blockchain platforms. For example, a developer can take cryptocurrency price data from an off-chain platform like CoinMarketCap and then use it on a decentralized crypto exchange (DEX).
Chainlink is used on the largest DEXs in the world. New features have also been introduced recently, including proof of reserves for exchanges. As I wrote recently, the network has also created the ability to stake LINK tokens. Therefore, Chainlink could become a winner next year as the crypto market begins to recover.
This guide describes how to buy Chainlink.
Aptos | apartment
Aptos is a relatively new cryptocurrency that could be a good investment for 2023. It is a smart contract platform that is significantly faster and cheaper than Ethereum. In recent months, the total value of deposits (Total Value Locked) has reached more than 55 million dollars, which was made possible thanks to the cooperation with PancakeSwap. Therefore, as the acceptance of this coin increases, there is a chance that the price of Aptos will perform well in 2023.
Other cryptocurrencies to invest in in 2023 are Uniswap, dYdX, Polygon, and Cosmos.
The information on this page does not constitute an investment recommendation.