Even with FTX's experience of its dominance at the top of the cryptocurrency market providing daily fodder for its numerous rivals and crypto skeptics, Bitcoin has reached a level of market dominance within months.
The cryptocurrency asset market has seen a period of turmoil in 2021 after several tokens reached all-time highs, and it is expected that the turmoil will end with ongoing lawsuits against Bankmann-Fried and FTX in general. While these headlines dominate the media conversation surrounding cryptocurrencies, there is one very important trend that has suddenly gone under the collective radar: Bitcoin's return to market dominance and leadership. For ordinary users and investors, this may seem strange, as Bitcoin dominates most cryptocurrency conversations, whether driven by retail or institutional investors. However, the reality was different, as there were repeated calls to end Bitcoin's dominance at different times.
Expectations after Ethereum
Despite this, Bitcoin remains the most influential, largest and most traded cryptocurrency asset. Let's take a look at what this could mean for cryptocurrency development by the end of 2023.
Bitcoin is an asset class
The fact is that although Bitcoin was originally created as a means of transaction, the reality is that Bitcoin is considered an asset class, with more than 50% of Bitcoin “moved after one year. Coupled with the institutional willingness to allow Bitcoin products and start trading, this reinforces that Bitcoin is increasingly being viewed as an asset class, and that Bitcoin stands out from the other token projects that have flooded the market in recent years. reinforces this trend.
The implications of this situation are significant and will directly and indirectly affect the broader cryptocurrency space. First, all of this ensures that stablecoins will continue to see success as a medium of exchange and as a way for most institutions and entrepreneurs to learn about crypto assets. This means that PYUSD and the potential for state-issued stablecoins (such as the Wyoming Stable Token Project) will play an important role in the implementation, realization and evolution of cyber security of crypto assets.
Bitcoin will continue to make headlines in terms of both perception and impact on everyday use of cryptocurrency, but projects led by TradFi will lag behind.
The number of tokens will decrease
Something that was recently discussed in NFT
Despite the near-constant stream of bad news and negative headlines about crypto-currencies, including the revelations about what happened at FTX, Bitcoin has remained surprisingly stable and increased its dominant market share. As the cryptocurrency market continues to mature and grapple with long-term high interest rates, investors will continue to seek value from the tradefy space with increased competition and the potential for government-backed tokens.
Ultimately, crypto assets are financial instruments and investors of all types will continue to seek assets with fundamental value; Bitcoin continues to meet this need.
Transparency will become increasingly important
Regardless of how some cryptocurrency proponents argue for a lightly regulated future, the reality is that compliance, regulation, and standards will improve the health and sustainability of cryptocurrencies in the future. Whether it's the emergence of stablecoins issued by TradeFi institutions, multiple ETF mandates by major asset managers, or the launch of tokenized platforms by the largest US banks, the message is clear. Cryptocurrencies are here to stay, but the thousands of digital currencies that exist today will not have the liquidity.
Since all kinds of big companies invest heavily in the development of these projects and try to recommend their customers to do the same, the transparency and validity of these products and services must be impeccable. This means that reporting, disclosure, custody practices and compliance must be at the forefront of the future of crypto assets. Bitcoin appears to be playing that role again, with $1 trillion in spot ETFs driven by asset managers focusing on Bitcoin to the exclusion of all other currencies.
Bitcoin has long been the cryptocurrency market leader, and its continued dominance is positive for both Bitcoin investors and the cryptocurrency sector in general.