Cryptoсurrency market and NFT in 2023: a promising start
The beginning of 2023 turned out to be very optimistic for the cryptocurrency and NFT market. According to coinmarketcap, Bitcoin was trading at 16.580 at the end of 2022, at the time of publication it was already trading at $18,218. Already in the first week of 2023, NFT sales increased by more than 25%. A 25% increase in the first seven days of 2023 was also observed in the native token Barter Smartplace, BRTR.
Let’s try to analyze the reasons for the growth. Firstly, the crypto market only at the very end of 2022-beginning of 2023 began to recover from the collapse of Terra-Luna and FTX — the market is gradually regaining balance after the negative hype. Secondly, there are a number of more subtle reasons.
Bureaucratic and infrastructure lag
If we are talking about the resumption of growth in NFT sales, then it already started back in November 2022. Of course, now NFT sales are far from the indicators of the end of 2021-beginning of 2022, but nevertheless, when the first hype ended in April, until November, sales just fell. The point here is far from the negative background from the collapse of Terra / Luna and FTX. It’s a much deeper mechanism.
The fact is that an adequately prescribed legal framework and the necessary infrastructure for the implementation of technology appear much later than the hype, this is especially true for the cryptocurrency and NFT market. Bureaucracy and traditional media platforms simply can’t keep up with the hype. That is, the first hype ends before the regulators finish writing the legal framework and traditional media platforms begin to implement the appropriate infrastructure. This is not to mention the fact that investors first want to see the metrics before investing anywhere.
For NFTs, the infrastructure and legal framework in various countries has only just begun to emerge. Twitter announced the NFT display option at the end of October 2022. Vkontakte introduced its VK NFT service in the first half of December. A Chinese court recognized the NFT as property in December. The list goes on and on.
Although the first NFT hype of late 2021-early 2022 is over, now the growth in sales of non-fungible tokens is due to the fact that the legal framework and infrastructure have finally matured.
Other reasons
Other reasons can be cited as well. The fiat monetary system also has a strong impact on the crypto market, it is believed that there is a correlation between the price of BTC and the state of the stock market in the United States. Growth could also have been helped, apparently, by positive economic data, according to which the number of jobs in non-agricultural sectors exceeded expectations. The US stock market turns green as the Dow and S&P 500 are the best performers since November 2022.
The reasons are many and varied, but we see a promising growth in the crypto market and NFT sales in early 2023. We hope that you will be able to catch the wave of success for a long time.
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