- As we assess 2023, the crypto market underwent significant developments and notable regulatory changes.
- The launch of Friend.tech on Coinbase’s Ethereum Layer 2 chain, BASE, in 2023 sparked interest in SocialFi.
- Following the introduction of Chat GPT towards the end of 2022, discussions about the expanded role of artificial intelligence and machine learning across various industries intensified in 2023.
What were the standout developments in the cryptocurrency ecosystem in 2023? Developments in the ecosystem can be categorized under five key headings!
Key Developments in 2023
As we reflect on 2023, the crypto market experienced a year filled with significant developments and regulatory changes. From innovative steps in the crypto and DeFi spaces to digital asset frameworks, it was a crucial period for the industry. Additionally, 2023 witnessed the adoption of a unified regulatory framework for crypto assets by the G20.
The groundbreaking Markets in Crypto Assets (MiCA) regulation from the EU also received approval in 2023. These changes, coupled with the increasing anticipation for the first Bitcoin spot ETF, brought new legitimacy to cryptocurrencies on a global scale. In evaluating 2023, we’ve selected five defining moments for the crypto and DeFi market:
SocialFi
The launch of Friend.tech on Coinbase’s Ethereum Layer 2 chain, BASE, garnered attention in 2023, particularly in the realm of SocialFi. The August launch brought together social media and cryptocurrencies, sparking discussions about the potential revolutionary impact on social media platforms. It increased user interaction, integrated crypto more deeply, and opened up new financial opportunities for influencers.
AI Revolution
Following the introduction of Chat GPT towards the end of 2022, discussions about the expanded role of artificial intelligence and machine learning across various industries intensified in 2023. From healthcare to entertainment, the deeper integration of AI opened up new business opportunities. This made 2023 a known year for the advancement of AI technologies.
Tokenization
In December, Bitfinex Securities Ltd., a platform focused on security token trading, raised 5.2 million USDT by issuing its first tokenized bond. 2023 marked a notable shift as traditional banks and institutions embraced tokenization. The trend of tokenizing real-world assets in the crypto market will play a role in bridging the gap between conventional financial assets and the digital asset space.
Bitcoin Revolution
The Bitcoin blockchain underwent a revolution in 2023 with the introduction of Ordinals in January and the launch of BRC-20 tokens in March. These innovations brought Ethereum-like ERC-20 functionality to Bitcoin using the Ordinals protocol. The emergence of these capabilities encouraged other chains to take similar steps, igniting new investor interest.
Ethereum Evolution
Ethereum experienced a significant evolution in 2023 following the Merge in September 2022. The ETH Shapella network upgrade in April revitalized interest in the Ethereum ecosystem. Allowing the withdrawal of staked ether for the first time, this update further enhanced Ethereum’s appeal in the DeFi ecosystem.
