Crypto to watch in 2023
A prolonged decline in the cryptocurrency market can be difficult for investors. Yet others see it as a great opportunity to buy high-quality digital currencies at discounted prices. There are no guarantees, of course, but those who can keep a cool head and make investments during market turmoil can potentially see the best returns when the trend eventually reverses.
Here are some cryptocurrencies to watch for 2023:
With Ethereum’s upcoming Shanghai upgrade allowing withdrawals of staked ETH, the narrative for liquid staking derivatives is strong through 2023. Rocket Pool is an open-source, decentralized Ethereum 2.0 staking platform designed to make staking more accessible and efficient for individual and institutional users. The goal of Rocket Pool is to make staking more accessible, lower barriers to entry, and increase the decentralization of the Ethereum network.
In the past, many ETH investors were unable to participate due to the minimum requirement of 32 ETH. RocketPool allows many small stakers to pool their resources to create a single, larger staking node, which can support the network and earn rewards.
“Lido, another liquid staking derivative protocol, has so far dominated the market share in the industry,” says Martin.
“However, Ethereum enthusiasts would prefer to see increased competition to improve network decentralization. Lido has handpicked 29 node operators, while RocketPool’s core value proposition is to ensure that those looking to participate in Ethereum security can do this without technical expertise or high capital requirements.
RocketPool looks set to grow through 2023 as the trend for investors to stake their ETH heats up.
GMX is a decentralized exchange specializing in spot and margin trading with low swap fees and minimal price impact when opening and closing trades. It uses a proprietary multi-asset pool that generates revenue for liquidity providers through market making, swap fees, and leveraged trading. This pool allows liquidity providers to provide assets to the platform to trade liquidity and in return receive revenue from traders using the platform.
GMX is consistently among the top five apps and blockchains for most daily charges generated. This involves people paying voluntarily to use the platform and shows that the commodity market is perfectly suited for the exchange.
“Unlike most crypto assets which were down 70-90% from 2022 to 2023, GMX ended higher on the year due to the distribution of fee revenue and users looking for other places to invest. ‘leverage instead of collapsing FTX,’ says Martin.
GMX is well positioned to continue to perform well into 2023 and is worth watching.
Frax Finance is a multifaceted decentralized finance platform with a lot to offer until 2023. Frax is a revolutionary fractional stablecoin protocol. Currently accessible on Ethereum and 12 others block chain networks, the ultimate goal of the Frax protocol is to create a highly scalable, decentralized, algorithm-based currency that can work in conjunction with fixed-supply digital assets like Bitcoin.
The Frax ecosystem has several coins, including US dollar stablecoins, governance tokens, and a staked liquid derivative of ETH.
As Martin put it, “Frax’s ETH-staked derivative, sfrxETH, is the fastest growing decentralized alternative to Lido’s stETH in terms of percentage market share. The attractiveness of a staked derivative of ETH comes down to two main factors; yield and liquidity. Frax currently offers the best-performing derivative and has a war chest to incentivize liquidity, which puts it in a prime position to continue capturing market share throughout 2023.”
Additionally, stablecoins are one of the core components of the digital asset market, and Frax’s innovative offering could be well positioned to capitalize on this fact. Coupled with the multifaceted nature of the project and the committed team, this project is definitely one to watch throughout the year.
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