The world of cryptocurrency and non-fungible tokens (NFTs) has evolved rapidly in recent years, and with the current market trend, 2023 is posing to be a tumultuous year. Both cryptocurrencies and NFTs offer unique investment opportunities and the potential for high returns, but they also come with their own set of risks.
CRYPTO INVESTMENT: Risk and Opportunities
Most known cryptocurrencies such as Bitcoin and Ethereum, are still leading the pack as a digital form of currency that operates on a decentralized network. It has gained popularity as an investment option due to its potential for high returns, low fees, and fast transactions. In 2023, many experts predict that cryptocurrency will continue to grow in popularity and mainstream adoption, making it an attractive investment option for many, but the current market states otherwise.
Image from: https://coinmarketcap.com/charts
Although cryptocurrencies are expected to go on a long bear market, based on their historical performance, they are still doing pretty well. It has not yet reached record lows from the old 2020, but instead, shows resistance for a great return in the coming years. This shows that this may be a great time for investors to focus their attention on.
The downfall of FTX, CELCIUS, and LUNA may have caused a distrustful heart amongst crypto enthusiasts, but the trend shows that more and more people try web 3.0 on a daily basis. In fact, the term Web3 gets searched an average of 195,000 times per month on Google and increasing based on this data. This shows that there is a significant potential that it will eventually be widely used, and those who are early in the game might just get a handsome return from it in a few more years.
NFT INVESTMENT: Risk and Opportunities
Now we dive into NFT investment opportunities. NFTs are unique, digital assets that are stored on a blockchain and can be bought, sold, and traded like other forms of cryptocurrency. Unlike traditional cryptocurrencies, NFTs have a specific use case, such as representing ownership of a piece of digital art or a collectible item.
In 2023, we can expect the NFT market slowly become a bit mainstream, offering exciting investment opportunities for investors. However, it is important to be cautious of NFT scams, as the market is still largely unregulated.
Image: from https://dune.com/queries/3469/6913
As seen in the image above, the monthly transaction volume on the OpenSea Ethereum chain has significantly dropped over the start of the year. But fear not, as this is probably reflected by the expected long winter market trend for 2023. This, however, poses a great investment opportunity for the upcoming bull run.
But while Ethereum transactions on OpenSea show a decline in sales, Polygon seems to be stepping up. Last December 2022, Polygon outnumbered Ethereum on NFT Sales in OpenSea, with 1.5 million NFT Sales, vs 1.1 million from Ethereum mainnet, and doing so again this January 2023. Top-tier NFT collections are also able to hold their floor prices despite the winter season, which translates that NFTs are still definitely in the game as a great investment opportunity.
In conclusion, investing in cryptocurrency and NFTs in 2023 offers the potential for high returns, but it also comes with its own set of risks. As with any investment, it is important to thoroughly research the market, understand the risks, and only invest funds that you can afford to lose. Additionally, it is recommended to seek professional financial advice before making any investment decisions.
To start, you can connect with our team at Kairon Labs for Advisory and Crypto Market Making Services. You can reach our team of trading professionals by signing up at kaironlabs.com/contact.