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VICTORIA, Seychelles, Jan. 25, 2023 (GLOBE NEWSWIRE) -- okx ventures , the investment arm of the leading global cryptocurrency trading platform okx , has released its 2023 crypto investment outlook report . The report offers insights based on proprietary and third-party data on what can be expected in the space in 2023.
Ethereum Continues to Dominate Developer Spaces
With Ethereum's shift from Proof of Work to Proof of Stake leading to energy consumption being slashed by 99%, the ETH merge will deliver improved scalability, security, and environmentally friendly solutions - an attractive prospect for new and existing developers who want to pass these benefits on to their users. Danksharding is expected to boost TPS to 100k+ after the shanghai upgrade .
The Web 2.5 space will see steady growth. Traditional brands, internet companies, and KOLs have been successful enough in the Web3 space for Web 2.5 applications to attract a number of new users to the crypto industry.
With low-threshold wallets, improved Web3 experiences, easier access to DApps, the introduction of secure, shared open source solutions, and many more innovations on the way, we'll start seeing a more user-friendly environment for crypto beginners to explore Web3.
Decentralized stablecoins should make a comeback. Stablecoins are critical to DeFi protocols and can be used to attract new users to DeFi, improve liquidity, and increase the revenue and FDV of the protocols.
The rise of GMX represented an adoption breakthrough in 2022. Layer 2-enabled derivatives are also set to emerge.
It is expected that the NFT industry will move beyond digital art and push into utility applications for wider adoption. The next NFT innovation cycle is likely to include AMM mechanisms, liquidity pools and NFT lending, among other developments.
Industry-Wide Focus on Infrastructure
Bigger bets will be placed on permissionless and decentralized infrastructure projects, including new data tools.
The liquidity fragmentation brought by Layer 2 solutions, app-chains, and multichains such as Cosmos also brings greater opportunities for MEV. The manner in which Flashbot extracts on Ethereum will be completely different after danksharding, potentially creating a new MEV landscape. The industry can expect to see further MEV innovations in 2023.
On-chain data, tracking tools, and asset recovery tools are set to be one of the main focuses of 2023. On-chain data can not only provide support for Web3 security governance, but will also help with monitoring of on-chain activities, Web3 user behaviors, and tracking of lost assets. There is exciting potential in this field, and institutions are paying attention.
OKX Ventures' full 2023 Crypto Investment Outlook Report can be found here .