What does 2023 have in store for crypto? Here's what experts in India have to say

Crypto has had a tough time in 2022 and experts believe that things could change for the industry in the coming year. Which projects will be successful? Will crypto survive 2023? Here’s what experts in India have to say.

Crypto predictions for 2023

By Cyrus John: The year 2022 has been one to forget for crypto enthusiasts, investors, and the industry alike. From mega scams like the FTX debacle, and the crypto meltdown to the fall of goliaths like 3 Arrows Capital, crypto got a bad name for itself in 2022 and it seems there isn’t any light at the end of this dark tunnel (at least for this year).

As we get closer to welcoming 2023, there is a sense of anxiety amid the crypto community about what’s in store for various stakeholders. Will the crypto bellwether, Bitcoin, be able to survive this barrage of brickbats? Which other projects will capitulate and is there anything to look forward to in crypto?

Pressing questions like these have been living rent-free on the minds of many, which is why I thought of getting some answers from the horse’s mouth.

The fixer-upper

The year 2023 could be a window of opportunity for crypto to have an image makeover. A sector that at times has been castigated by policymakers and branded as “extremely volatile”, a “Ponzi scheme” and even a “scam”, needs to win back the faith of the people. I understand that 2022 has been plagued with headlines around crypto scams and ‘pump and dump’ schemes, but experts believe 2023 could be a bit different for crypto.

Seemingly, the focus could shift to projects that have a sustainable model and most businesses that were looking at a short-term profit could be shown the door. Rohas Nagpal, who is the Chief Blockchain Architect at Hybrid Finance Blockchain, believes that projects like Cardano, Polkadot, Solana, Tron, Avalanche, Ethereum Classic, Algorand, EOS, and Flow could see a continued decline in 2023.

“Some of them will probably not live to see 2025. I also expect to see the rise of privacy-enhanced cryptocurrencies like Monero, Zcash, and Dash.”, he added.

Jayjit Biswas, Founder of the Elite Web3 Forum in India, believes that only good projects like Bitcoin and Ethereum will survive to maintain their 2022 value level.

Will Bitcoin rise in 2023?

Also, the economic slump is predicted to continue in 2023 which is another reason for businesses to look toward long-term projects for investments. Jayjit also believes that if the global economy can sustain the pressure of recession, crypto can bounce back up to a maximum 20 percent from present levels.

I suppose a more conscientious path to restoration can begin with a balanced approach toward regulation.

2023 will see global crypto regulations coming to fruition, as there is a broader consensus among all global bodies, including the G20, to fast-track regulation. India, by virtue of its G20 presidency, will play a pivotal role.

Sharat Chandra

Co-Founder, India Blockchain Forum

Push for self-regulation & transparency

While the proliferation of fake cryptos and NFTs has exacerbated the overall situation, industry experts opined that regulation in this sector can help restore some parity. With self-regulation and a transparent legal framework for crypto in India, various stakeholders could have the liberty to build and invest with more confidence.

Customers demand more transparency from a security and compliance perspective. This will push for more self-regulation among exchanges and hold them to higher standards. This will clean up the ecosystem and create space only for serious players who understand the importance of establishing a trust to run their business.

Minal Thukral

Executive Vice President, CoinDCX

A key event that will decide the future of crypto in India is the 2023 Union Budget. Finance Minister Nirmala Sitharam has been vocal about a coordinated global effort in regulating crypto, and 2023 could see India lead the way in that department. Another factor that could make or break it for crypto is taxation policy.

The crypto markets will bounce back from the current low levels, citing ease in inflation and a less hawkish policy stance by central banks across the world. With the upcoming Union Budget, we expect clarifications on the classification and taxation of these VDAs and better crypto education.

Punit Agarwal

Founder, KoinX

A ‘trustless’ ecosystem

Despite its technological prowess, crypto has many chinks in its armour. While mega scams like FTX have only made things worse, crypto-related businesses across the globe have struggled throughout the year to maintain operational costs due to a vertiginous fall in crypto prices and the overall negative sentiment. Could things be different in 2023?

The crypto ecosystem will continue to develop for the long term throughout 2023, with an increased focus on infrastructure building. Investors will look at higher-quality assets and there will be a notable shift to Defi protocols so we can expect transparency there. Factors like sustainability, asset and ecosystem maturity, market liquidity conditions, and the ability to extract deeper value from existing assets will be the determining factors in investor and user choices.

Minal Thukral

Executive Vice President, CoinDCX

Blockchain adoption in 2023 needs to rise.

Besides crypto, blockchain technology also needs to receive a push from investors and the government. Recently, a bevy of private equity firms decided to leverage blockchain technology to reach affluent investors and also to provide a less-cumbersome process to invest. This is just one of the many examples where blockchain tech is being deployed to make the lives of investors easier.

2023 seems like a year of adaptability – not just individual investors but large businesses and organisations are expected to dive more into the crypto pool and fish out such cases that can redefine crypto. The introduction of new projects and tokens like RobotEra, IMPT, and Tamadoge is exciting for investors. We may also see analytic trading tools like Dash 2 Trade take off, as well as cryptos like Cosmos advance in the metaverse.

Punit Agarwal

Founder, KoinX

The battle wages on

While the Reserve Bank of India has been hard-nosed regarding its anti-crypto stance and has been pushing the digital Rupee aggressively, crypto will have to battle it out to remain relevant in an ecosystem where it’s still looked at with suspicion.

While Indian crypto investors weren’t hit as hard by scams like FTX due to the stringent tax regime in the country, it is expected that scammers will continue their relentless pursuit to exploit some of the weaknesses in centralised and decentralised projects in 2023. Therefore, the need of the hour is to focus on bolstering the current crypto infrastructure.

Crypto has a tough 2022

There will likely be an increase in technological developments in the cryptocurrency ecosystem in the coming years aimed at improving safety and transparency. These innovations could drive regulatory changes to support and promote them. It is also anticipated that there will be increased usage of cryptocurrencies for technological purposes, driving it to become a new asset class for investment.

Edul Patel

CEO and Co-founder, Mudrex

Crypto exchanges in India may have to deploy self-regulation protocols that go beyond the Proof-of-Reserve ‘safety net’ and provide a sense of assurance to investors whose faith has been dented due to the crypto market meltdown.

Players in the crypto ecosystem will have to make collective efforts to ensure transparency and reinforce trust. 2023 will see more digital asset innovation and less speculation and arbitrage products. Utility-driven projects will survive and pave the way for the creation of a Web3 economy.

Sharat Chandra

Co-Founder, India Blockchain Forum

Expect the unexpected

Crypto has survived all these years. It has shown resilience and 2023 could be another chapter in its struggle to be relevant.

The year 2023 could be a game-changer for crypto

While economic factors will affect the growth of this ecosystem, regulation will play a pivotal role in shaping how crypto will be integrated into the current financial infrastructure. Not to mention that the end user and people like us need to find utility in crypto and not see it as just a quick money-making tool.

Regardless of what fate befalls crypto, experts and crypto firms are optimistic and 2023 could be a game-changer for the cryptoverse. What do you think?

Published On:

Dec 31, 2022