Three Arrows Capital (3AC) co-founder Kyle Davies shared his 2023 cryptocurrency market predictions on Twitter. Also, the New Order DAO has published a blog post with 2023 projections for the Ethereum ecosystem.
2023 cryptocurrency predictions of 3AC co-founder
SBF will confess and accuse 100 people
Kyle Davies, co-founder of failed cryptocurrency fund 3AC, shared his predictions for the coming year. Davies talked about the most sensitive issues in the cryptocurrency market right now. He also announced his predictions for the future of popular products and companies in the industry. First of all, Davies claimed that SBF, the CEO of bankrupt cryptocurrency exchange FTX, would plead guilty and blame about 100 people. However, he believes that the SBF will not serve any days in 2023.
SEC will sue DCG
As for Genesis and Grayscale, both companies will face class action lawsuits, according to the 3AC co-founder. Additionally, the SEC will file a criminal case against Barry Silbert’s Digital Currency Group (DCG) for irregularities between affiliated subsidiaries.
Binance will increase its market share
cryptocoin.com As you follow, two issues occupied the agenda of the market at the end of November and the beginning of December. These were the largest cryptocurrency exchange Binance and stablecoin Tether. Both were accused of bankruptcy and potentially failing to meet the needs of investors. But Davis thinks both will do well. In this context, he predicts that Binance’s market share will rise. He also notes that Tether’s anchor to the dollar will remain intact.
Cryptocurrency will not die
Kyle Davies believes that the rally in the cryptocurrency market will start much lower than current prices as Dubai and Singapore become major cryptocurrency hubs. According to Davies, despite the dire picture most analysts paint today, Bitcoin and Ethereum will still produce blocks. Also, it will work as it should. Moreover, despite the declining activity of the industry in the last few months, the cryptocurrency market will not be ‘dead’.
Overall, Davies shares a surprisingly positive outlook for the industry for the year ahead. Considering the current general situation of the industry and the performance of the market historically, we may actually see a recovery in 2023, especially after the introduction of new regulations.
New Order DAO’s Ethereum ecosystem insights
Winter market will continue
The New Order DAO begins its forecasts with the crypto winter deepened by the Terra (LUNA) and FTX crashes. He does not foresee that the impact of these collapses will disappear quickly. That’s why he says bears will continue to dominate the crypto market in 2023. In this direction, he expects a sideways movement and low volume rather than further declines. However, he takes a more positive approach to the Web3 space.
EigenLayer will be the most important innovation
New Order suggests that the EigenLayer smart contract will be the most important innovation of 2023. He talks about some of the problems in blockchain development and says that EigenLayer, working with the re-stake method, will solve it.
The scalability issue will be a headache
Addressing the problems of Ethereum’s scalability and high network fees, New Order is looking to solve it. He argues that Ethereum developers will not solve the scaling problem of Blob transactions at the end of the day to solve these problems. He also notes that not finding a solution to this problem will lead to bigger problems.
ZK-Rollups will not be able to settle in the center of crypto
Many developers today are discussing ZK-Rollups technology, which uses the Zero-Knowledge-Proof method. However, New Order states that the crypto market is still far from centering this technology. It’s because they’re not ready yet. He also notes that this technology has not achieved sufficient decentralized structure.
New powerful opponents will appear in Tier-2s
Layer-2s came into play to solve Ethereum’s high transaction audacity and slow speed issues. However, now Layer-3s are entering the world of Blockchain. According to New Order, Tier-3s will switch accounts in the Blockchain race. In this context, he claims that Tier-3s will be a serious rival to Tier-2s such as Cosmos, Avalanche, Polkadot.