Next Cryptocurrency to Explode in 2023

The cryptocurrency industry has completely revolutionized the modern world in many aspects because of its unique properties and characteristics. Millions of traders, crypto enthusiasts, institutional investors and business institutions are already enjoying the benefits of digital currencies. At the same time, more and more different crypto projects appear every day, which bring even more different benefits to society. Some of them are forgotten, while others disrupt crypto space, skyrocket and become incredibly popular.

KEY TAKEAWAYS

• Cryptocurrencies are digital decentralized assets that operate on the basis of distributed ledger technology to replace traditional finance.
• Today, the most promising crypto technologies are chainlink, metaverse and NFT.
• Bitcoin is the most popular cryptocurrency that was born in 2009. The second most popular cryptocurrency today is Ethereum.

Definition of Cryptocurrency 

Cryptocurrency is “digital” money, with the main difference from existing non-cash settlement systems being the independence of their issue, circulation, and use from the control of the state. Information about money circulation of a particular cryptocurrency is protected by encryption (cryptography).

In most cases, the basis for cryptocurrency circulation is blockchain technology, which is essentially a registry where all transactions of community participants are recorded and stored on multiple computers in the network. All participants have equal access to the information, which must be addressed due to the scale of the distribution of such storage. Decentralized blockchain technology allows the refusal of any intermediaries for transactions, i.e., equal crypto market participation does not feel the need in registrars, notaries, guarantors, and banks. The latter, which traditionally played the role of “financial” agents, are excluded for both payments and credit operations in the crypto finance environment. All this significantly reduces costs and determines the inevitability of crypto-economics development.

The first really serious cryptocurrency in terms of technology was Bitcoin (BTC). Different types of crypto assets from Bitcoin were called altcoins, which means “Bitcoin alternatives”. The creators of new “coins” try time after time to improve one or another parameter of the technology of the “king” of crypto coins: to increase the speed of calculations, to achieve greater anonymity or to add additional functions.

Some altcoins carry the word “Bitcoin” in their name and are its technological and more advanced offshoot (fork). For example, the creators of Bitcoin Cash (BCH) pursued the idea of optimizing the obsolete Bitcoin code and thus increasing the throughput of transactions per unit of time (per second).

The second most capitalized cryptocurrency is Ethereum (ETH). Its underlying technology allows it to operate so-called smart contracts, i.e., contracts protected by cryptography. Most of the ICO (Initial Coin Offering, a new form of attracting investment, which appeared due to the crypto-economy in the form of the sale of newly created cryptocurrency units to most crypto investors as a result of the issue of certain business projects) takes place in the Ethereum network, which provided this “coin” great popularity and allowed, along with Bitcoin, to be traded on the exchange for most listed altcoins.

Overview of the Cryptocurrency Market in 2023 

Despite the protracted bearish period in the crypto market, the cryptocurrency and blockchain industry continues to expand, create new trends and attract new users, developers and investors. Major players are betting on the expansion of the Web 3.0 segment, whose further growth is predicted in annual reports by companies such as Coinbase, Cumberland or the Crypto.com exchange. Analysts of the latter estimate that in 2023 the number of cryptocurrency owners in the world could reach 600-800 million. Many crypto industry experts talk about their vision of the current trends of the year and predict further scenarios for the cryptocurrency market.

In 2023, we should expect tighter regulation of the crypto sphere, according to crypto experts. Based on their estimates, regular publication of crypto exchanges’ financial reports may become a mandatory requirement from state supervisory authorities. The process will be monitored more closely to prevent new situations like those that occurred in 2022, such as the collapse of the FTX exchange and Terra ecosystem, as well as a series of bankruptcies of major cryptocurrency lenders.

Among possible technological trends, experts single out the development of meta-villages and the creation of new cryptocurrencies. In their opinion, the fall of the crypto market has partly stalled the development of this niche, but the crypto projects of major social networks will probably be able to revive this direction. Perhaps Meta will be a trailblazer, experts suggest. The focus of the industry will shift to the development of metaverses or other similar projects capable of combining a variety of technological tools into a single ecosystem, suggesting that the consolidation and unification of crypto services could become a trend this year.

The second possible direction for the cryptosphere in 2023 could be the mass adoption of applied NFT solutions. If a year and a half or two years ago exclusively collection image projects prevailed, in 2023 there may appear bundles with real tools. Part of the process has already started in 2022 thanks to the introduction of NFT by social networks like Twitter, Reddit, Onlyfans, etc.

Another potential trend could be the realm of oracles, protocols for exchanging data between a smart contract and sources outside its blockchain. One of the most prominent and capitalized projects in this field is Chainlink. It is likely that the industry will finally begin to fill the blockchain information vacuum and increase the decentralization of its “gateways” in the framework of decentralized finance to the outside world, which will breathe life back into smart contracts and give new impetus to decentralized applications with accessible crypto prices.

FAST FACT

• The first transaction was made on January 21, 2009, nine days after the cryptocurrency was officially released. Satoshi Nakamoto transferred 100 BTC to the account of Hal Finney, who was a cypher punk and cryptologist at the time.

Potential Next Cryptocurrencies to Explode in 2023

When considering cryptocurrencies in the context of investing, it is impossible not to mention that they are a great informational tool for capital appreciation. Any crypto project or utility token can become incredibly popular in a matter of days, bringing big profits. There are many potential crypto coins on the cryptocurrency market today that are worth paying attention to.

1. MANA (Decentraland)

Decentraland was launched after an initial coin offering (ICO) of $24 million in 2017. Virtual World opened its closed beta in 2019 and became available to the public in February 2020, including LAND areas, interactive games, extensive three-dimensional scenes, and other interactive features.

Decentraland uses two crypto assets, native token MANA and LAND. MANA is an ERC-20 token that must be burned to get the irreplaceable ERC-721 LAND tokens. MANA tokens can also be used on the Decentraland marketplace to pay for various avatars, wearables, names, etc.

Decentraland is also one of a growing number of projects using a decentralized autonomous organization (DAO) structure to make management decisions. As a result, MANA token holders control the behavior of the Decentraland World by suggesting and voting on policy updates, features of upcoming LAND auctions, and the types of content allowed in the Metaverse.

2. ALGO (Algorand)

The next promising cryptocurrency to consider investing is ALGO. Algorand is a decentralized network based on blockchain technology, and its native cryptocurrency is known as ALGO. The idea behind Algorand was to combine features of major, well-established cryptocurrencies — such as decentralization, transactions without a central authority, and easily divisible tokens — but with additional speed and less processing power needed to run the system.

3. DOT  (Polkadot)

First, Polkadot is not a cryptocurrency, but a multiplatform designed to unite all existing blockchains into a single global ecosystem. Polkadot’s mission is to create a completely new Web3 network based on dinner blockchains, where information exchange will be completely decentralized.

Polkadot creates a platform within which new blockchains can be created and to which existing blockchains can be connected. This system can run cross-registries and cross-computing. It will also allow blockchain systems to process and transfer data quickly and securely while avoiding system-wide updates or hard forks. The platform has its own native token called DOT, which can be found in every crypto exchange.

4. AXS (Axie Infinity) 

Axie Infinity is a blockchain game in which players control everything themselves. The mechanics involve receiving rewards in the token of the same name during gameplay. The further fate of the game and the transition to the next level depends directly on how much AXS Coin the user earns.

Today, Axi Infinity is the leader in terms of daily, weekly and monthly user activity compared to other unloaded Ethereum games. The success of the project can be measured by the profitability estimated by the creators of the project. The profit was over $16,000,000 or 13,000 ETH.

5. AAVE (Aave)

The next cryptocurrency to explode is AAVE. AAVE is a decentralized and non-storage, open-source liquidity token that helps users lend and borrow cryptocurrencies. Lenders can earn a significant percentage of their assets in specially created liquidity pools. However, borrowers can then use the cryptocurrency as collateral to obtain an instant loan with that liquidity.

The AAVE protocol is open-source and allows interaction with the client through a user interface or to establish a connection with smart contracts on the Ethereum blockchain. However, the cost of interaction depends on the complexity of the transaction and the status of the network.

Conclusion

Cryptocurrencies have become a real hit in the financial world, gradually replacing traditional money and paving the way for a new digital era. Numerous digital currencies that exist today are not only of interest to many traders and institutional investors wishing to invest their money. The explosive growth of many crypto projects is capable of generating hundreds and sometimes thousands of percent returns if invested in time.