TechFlow news — Coinbase has released its "2023 Crypto Market Outlook," outlining three key themes expected to dominate in 2023, along with updates on Bitcoin, Ethereum, regulation, and more. The report highlights:
1. Institutional investors shifting toward high-quality assets;
In the crypto space, Coinbase expects digital asset selection to shift toward higher-quality assets such as BTC and ETH, based on factors including sustainable token economics, maturity of respective ecosystems, and relative market liquidity.
2. Creative destruction ultimately brings new opportunities;
Coinbase believes investor appetite for altcoins has been severely impacted by deleveraging in 2022 and may take months to fully recover. Recent events have hit newer projects particularly hard. Specifically, some protocols lent their tokens to market makers that used FTX as a liquidity pool. These projects must now wait until bankruptcy proceedings conclude to reclaim their assets, meaning they may be unable to access a significant portion of their native token treasury for years. This could significantly affect developer retention and future application development.
3. Foundational reforms ushering in the next cycle;
Coinbase believes the next market cycle for digital assets will largely depend on the development of standards and frameworks by regulated entities. Clear guidance is necessary to prevent innovation from being driven to jurisdictions with weaker regulations where customers may face greater risks.Original link
