Utility and Adoption Will Drive NFT Growth, and Ethereum Remains King
The year 2023 promises to be a landmark event for the world of cryptocurrencies; I see numerous breakthroughs and growth prospects for the year ahead.
Leading companies are forging the way for the future of the internet, with top global brands taking a step into web3 and NFTs. This trend provides valuable insight into the direction of the digital landscape and the increasing adoption of blockchain technology.
The NFT industry saw remarkable success in 2022, with total sales of $55.5 billion. The future looks bright for the NFT market, with continued growth and expanding adoption on the horizon. Experts are forecasting a significant increase in user numbers, reaching 64.45 million by 2027.
Will the NFT market continue its upward trend and surpass the 2022 figures?
It’s practically impossible to predict what will happen in a space as crazy as crypto, However, I will venture to make some predictions for 2023:
My crypto predictions for 2023:
From clients to members.
More people will understand what a DAO is.
The Metaverse will continue to develop.
Social tokens will increase in value.
Regulation is coming.
There will be a new El Salvador (or several).
Digital identity will be normalized.
Web3 diplomas will become relevant.
AI changes everything!
Ethereum is still the King and Polygon the prince.
Will Bitcoin rise in price!?
From Clients To Members
The magic of NFTs is that holders have the potential to be stakeholders in a growing product.
As Mike Troiano points out, Web3 Is About Communities, and You Build One With a Story. The sense of belonging that exists in some of these digital communities is what makes the associated NFT shine.
If you spend time in this ecosystem you will realize that the word “client” does not appear. That’s because brands are realizing that users are looking for something more than just a product.
In web3, your community shapes you and you shape the community. This links to my next prediction:
More People Will Understand DAOs
Decentralized autonomous organizations have endless business applications. For this reason, many traditional companies are pivoting towards this new way of understanding the world of work.
Decentralization is here to stay.
Most people are unaware of the advantages of a DAO. In many ways, DAOs are the new membership clubs. BanklessDAO, as a prime example, has made a lasting impact by becoming one of the first thriving digital communities, bringing together thousands of people who are united by the #GoBankless movement.
My (easy) prediction for 2023 is that DAOs will continue trending upwards.
The Metaverse Will Continue To Develop
The metaverse is a fun and interactive opportunity to create shared value. We spend more and more time in front of a screen. How about we go inside?
At the beginning of the year 2022, everything was hype and numerous projects arose that promised to build unique metaverses. A year later, most have made no progress. With a few exceptions like Decentraland and The Sandbox, the reality is that we are still far from achieving the ideal metaverse where people will choose to live, work, and play.
My prediction is that as adoption continues to grow, more people will start working in a digital environment and this will be the catalyst for the metaverses to improve and create truly exciting experiences.
Many big brands “played their cards” in the virtual world during the year 2022 and it’s highly likely more will enter the metaverse in 2023.
Social Tokens Will Increase In Value
The options that NFTs offer artists and creators are endless.
Imagine a world where you can’t just buy a ticket to a VIP concert, you have to earn it through social proof.
As I wrote earlier, the community is a key part of the success equation for content creators today who live off the revenue percentages that platforms like YouTube, Spotify, and TikTok pay them. Web3 breaks that dynamic. NFTs contribute to the value of social tokens by providing unique and rare digital assets tied to the tokens, creating scarcity and increasing their value.
Now fans can support their favorite artist or creator without the need for intermediaries. What does that mean? It means Big Tech’s monopoly is coming to an end.
Many AAA games will hit the market in 2023 and drive widespread adoption. Several games that integrate blockchain technology will explode during 2023. Some now prefer the term Play2Own, others call them digital assets, all to avoid the word NFT. However, it doesn’t matter what they’re called; the tech is the same.
One hundred years ago, athletes practiced their sport as a hobby. Over time, professional leagues and contracts began to emerge and today it is normal for professional players like Cristiano Ronaldo or LeBron James to earn millions for putting the ball in the right place. Many eSports are already transitioning to web3, which will allow the same thing to happen with video games.
Regulation Is Coming
Legal issues pertaining to the cryptocurrency industry have progressed in 2022.
Governments have realized that NFTs move a lot of money, and they want their piece of that pie. That is partly good, because now they’re supporting web3 development.
There are still many legal loopholes. However, many countries have advanced laws regulating the creation, purchase, and sale of NFTs, such as Europe’s MiCA law. Countries in Asia are taking giant steps in this regard. The US cannot afford to waste this technology.
CBDCs are already here and there is little we can do to avoid them. What we can do is help define the limits that the government wants to set on web3.
There Will Be a New El Salvador (Or Several)
Taking into account the previous point, more countries will break free from the yoke of the dollar and embrace the freedom of Bitcoin.
People who are against cryptocurrencies often take pleasure in market dips and use it as an opportunity to criticize figures like Nayib Bukele, El Salvador’s president, because they see cryptocurrency and its associated technology as a threat to traditional financial systems and established economic structures.
Perhaps the best solution is to create a Bankless Nation.
Solutions for Secure and Reliable Digital Identities Will Be Explored
One aspect of security that is under debate is the issue of anonymity on the blockchain network. While anonymity has its benefits, such as protection of personal privacy and more secure transactions, it also opens opportunities for bad actors to exploit the system.
For certain industries, such as education or health, a verified digital identity may be essential for secure transactions and data management.
Polygon is one platform that is working to address the issue of digital identity. They are exploring solutions to ensure secure and trustworthy identities in the decentralized world, and their efforts could play a significant role.
It’s impossible to predict exactly what the future of digital identity will look like, as it’s one of humanity’s most complex and challenging dilemmas. What is certain is that it will be a hot topic of discussion in 2023.
Web3 Diplomas Will Become Relevant
Online education is not something new. However, with new web3 tools being developed, and combined with improvements in the metaverse, many more educational projects will focus their efforts on the digital format for delivery of courses and credentials. Proof of Participation will become commonplace in 2023. In 2022, we’ve seen thousands of verifiable diplomas on chain. By 2023, this number will grow to millions.
NFTs empower individuals with the ability to demonstrate and validate their participation in a lecture or completion of a course with a unique, verifiable digital certificate.
BanklessDAO, always at the forefront of this tech, has created Bankless Academy, which may lead the way in on-chain education through quality content and verifiable attendance and participation.
AI Changes Everything!
We’re just starting to realize what artificial intelligence (AI) can do, and it seems scary to many. Hovering around Twitter, I once read: “don’t fear AI, embrace it!”
Creative individuals have before them what is arguably one of the greatest tools ever for creating art. Creators who know how to take advantage of AI will stand out.
At the Decentralized Arts newsletter we have already covered Botto and Refik Anadol: two NFT projects that integrate artificial intelligence. We wrote about the idea that all art is appropriation of human-generated art, and that AI art is simply more transparent about it and serves as the next evolution of creative tooling.
In a few years you will be able to create a movie from scratch simply by writing a synopsis.
Ethereum Is Still the King and Polygon the Prince
For years it was discussed whether Messi is the best soccer player in history or not. After he led Argentina to victory in the World Cup, it seems nobody disputes it any more.
Image source: Binance Argentina Twitter
Will Bitcoin Rise in Price!?
First of all, I am not a financial adviser, nor do I give financial advice.
I am not going to be one of those who say that BTC will be worth $200K by the end of the year. I have quit FOMO. Nor will I dare give an exact price. However, I do anticipate that we will bottom out for the first half of the year and then pick up slightly. I think it is fair to consider that by the end of the year 2023, one bitcoin will be worth more than $17k.
Mental note: come back here in a year.
Crypto’s all-time high was a wild ride, with some proclaiming that 99% of crypto projects would fall apart. However, despite the skeptics, the crypto community persevered and proved them wrong, as adoption continued to rise in the face of challenging macro conditions.
Yes, market volatility may be a constant companion in the crypto space, but it’s a small price to pay for the revolutionary power of decentralized technologies. Web3 companies must learn to accept and navigate the ups and downs, using it as fuel for growth and innovation.
NFTs may have fallen from their hype-filled peak, but make no mistake, this was only a temporary setback. In 2023, adoption will continue and the industry will spread its wings and soar to new heights.
At BanklessDAO, we are more than just cryptocurrency enthusiasts, we are true believers in the transformative power of decentralized technologies. We stood our ground through the crypto winter and came out even more determined to build a better future. In 2023, we will continue to do just that, with our heads held high and our eyes fixed on the horizon.
Author and Designer Bio
KAF is a web3 educator who helps people get closer to NFT, DAOs, DeFi and metaverse.
nonsensetwice is a writer, editor, developer, and fitness professional. A member of, and contributor to, BanklessDAO since its inception, nonsense’s main drive to contribution is the development and growth of contributors in web3, particularly in the realm of governance. When he’s not engaged in DAO work or kicking clients’ asses with yoga, nonsense can be found playing Borderlands, producing work for his L V N A C Y project, or shitposting on social media. Follow the bastard at nonsensetwice and nonsensecodes on Twitter.
Trewkat is a writer and editor at BanklessDAO. She’s interested in learning as much as possible about crypto and NFTs, with a particular focus on how best to communicate this knowledge to others.
BanklessDAO is an education and media engine dedicated to helping individuals achieve financial independence.
This post does not contain financial advice, only educational information. By reading this article, you agree and affirm the above, as well as that you are not being solicited to make a financial decision, and that you in no way are receiving any fiduciary projection, promise, or tacit inference of your ability to achieve financial gains.
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