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The crypto market experienced a challenging phase in 2022. The collapse of Terra Luna, the
downfall in the value of Bitcoin, and the decline of FTX, all had an impact across the market.
Crypto experts have different opinions on the chances of the recovery of Bitcoin in 2023.
However, many new crypto coins and technologies based on blockchain are emerging at a rapid
rate, which will give new dimensions to the crypto market in 2023. Below are some trends that
will rule the market this year.

● Increase in Crypto Regulations
The need for strict crypto regulations has become louder now. Government officials, judicial and
financial arenas, advocates of consumer rights, etc are demanding crypto regulations largely
due to the disastrous fall of FTX that happened due to management failures, lack of sufficient
reserves, and lesser scope for auditing. Therefore, 2023 will experience more surveillance with
strict regulations in the crypto market as well as diligent jurisdictional enforcement around the
globe.
● More CBDCs
CBCDs (Central Bank Digital Currencies) are gaining wide popularity recently, mainly due to the
arrival of the Bahamian Sand Dollar. The introduction of the Chinese digital Yuan last year also
gained millions of users and has a high transaction volume. This crypto coin is available in more
than 20 major cities currently. These situations have brought high expectations for the launch of
CBDCs, EUR, USD, GBP, etc. Several crypto experts have stated that their analysis of the risks
and benefits of digital currencies is experiencing good progress.
● Increase in Stablecoin Investments
Crypto investments have had turbulent times recently and therefore, many crypto investors are
shifting their focus to stablecoins to escape from the volatility of the crypto market. Stablecoins
are safer than crypto coins as they have reserve assets for security. They are secured with
popular currencies such as the US dollar or the price of major assets like gold. Some of the
stablecoins also use particular algorithms to control their supply.
● Rise in crypto arbitrage robot trading
Many investors consider arbitrage as an investment strategy with low risk, which can generate
good revenue moving along with the market direction. Thus, it is the right choice for the current
crypto market. Arbitrage uses temporary price fluctuations across various exchanges. There will
be an algorithm to scan different exchanges simultaneously to find the time when the asset has
different prices. The arbitrage will buy the asset at its lowest price and make a profit by selling it
when the price is higher.

● The incredible growth in DeFi
Defi or Decentralized Finance is the financial position that is not managed by any entities and
has no intermediaries like government or banks for executing transactions. Defi uses a public
ledger’s smart contracts for transactions. Even though several innovative applications and
functionalities have evolved, DeFi is still in the infancy stage. But experts predict that there will
be a rapid increase in the user involvement of DeFi products like lending, staking, LPs, Swaps,
yield farming, etc. Many other twists in the DeFi market are also expected in 2023.