The sector must return to its origins and projects must focus on building, despite the moment.
If 2021 was One of the best years for cryptocurrencies2022 has been one of the most turbulent years. During the past year, the sector has had to experience a real emotional roller coaster.
The tightening of monetary policies around the world negatively affected cryptocurrency prices, as did the Terra debacle and the fall of FTX.
However, not everything has been bad. On the contrary, 2022 had great moments with The Merge, The Merger of Ethereum with the Beacon Chain, which changed the consensus mechanism of a blockchain, without having to stop its operation, or the growth of institutional adoption, with companies like A o Goal betting on the blockchain.
In this context, Ryan Selkis, CEO of on-chain analytics firm Messari, has expressed his view that the “crypto is inevitable”, despite the storm we experienced last year.
What does Ryan Selkis expect from 2023?
Selkis starts the Messari Annual Report explaining that 2022 was the year of Web3, an all-encompassing concept: blockchain, cryptocurrencies, metaverses, DeFi, NFTs and DAOs.
However, after everything that has happened in 2022, Selkis believes that The industry must return to the “crypto” concept:
- More self-custody.
- Greater focus on privacy protocols.
- More decentralized projects, whether social platforms or decentralized finance projects.
In short, Selkis is betting on returning to the origins of crypto and is betting on those projects that, in a scenario like the current one, continue to build and transform the sector for the better.
Why is crypto inevitable?
Messari CEO believes crypto won't go away because builders (builders) will continue to work and, over the last few years, The sector has built a solid foundation.
In addition, capital and talent have been attracted to continue working on innovation. At the same time, the new generations are digital natives, which implies a demographic growth of blockchain and crypto useFinally, protocols have improved their scalability, making them more efficient to use.
In recent years, there have been great advances in Bitcoin, stablecoins, blockchain, Decentralized Exchanges (DEX) and Centralized Exchanges (CEX) and governance structures (DAOs). All of these advances cannot be undone, You can only keep improving.
On the other hand, stablecoins occupy the top 10 cryptocurrencies by market capitalization (4 out of 10 positions) and their daily volumes rival those of the banks and the major card networks.
Selkis also mentions The Merge and compares it to man landing on the moon. The merger marked a turning point, as Ethereum has been the first blockchain to demonstrate that the Changing the consensus mechanism of a working blockchain is possible.
On the other hand, networks like Cosmos, Polkadot o Solana have also made great strides and have shown that Commission rates may disappear over time or reduced to a minimum.
The world of decentralized finance (DeFi), although still having certain security issues, continues to attract the attention of the whole world. In fact, in 2022 JP Morgan He made the first DeFi transaction with the Central Bank of Singapore.
Even NFTs, which have been one of the worst hit in 2022, have great potential for securing intellectual property transactions, tokenize real-world assets, create synthetic assets, digital consumables and identity tokens.
On the other hand, Decentralized Autonomous Organizations (DAO) have made great strides, gaining the legal recognition in certain parts of the world and improve their community treasury systems, voting delegation and on-chain voting.
Do you still believe in crypto?
Selkis recalls a paragraph from his previous report, in which he predicted the fall of the cryptocurrency market during 2022 and the problems that the sector would face, especially with the tightening of regulations.
However, he remains convinced that Crypto is inevitable and that the future is in keep building.
For Messari CEO, the current environment is ideal for building, as there are fewer distractions. With much of the bad actors out of the crypto space, the builders do easier to identify the real needs of users and build better solutions.
For Selkis the future is bright, because there are still many infrastructures to review and improve, many bridges to build and new standards to create.
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