The crypto market has been on a wild ride as we navigate through the first quarter of 2023. Bitcoin and Ethereum, the two leading cryptocurrencies by market cap, have experienced notable price fluctuations, while altcoins like Dogecoin, Fantom, and others are gaining momentum. The increasing adoption of decentralized finance (DeFi) and non-fungible tokens (NFTs) plays a significant role in the expansion of the crypto industry. Here’s a summary of some key crypto news and trends to watch in March 2023.
Weekly Market Watch
Bitcoin and Ethereum During the second week of March, according to Tron Weekly, Bitcoin, and Ethereum prices took a significant hit. This decline is believed to have been driven by rising inflation rates and ongoing uncertainty regarding regulatory policies. Bitcoin’s value dropped by nearly 5%, and Ethereum fell 7%. Nevertheless, both cryptocurrencies are still trading considerably above their lows from the previous year.
NFT Trading Volumes on the Rise
Non-fungible tokens (NFTs) have been one of the most talked-about developments in the crypto industry recently. According to Coindesk, NFT trading volumes hit $2 billion in February 2023, the highest since the Luna crash. The report attributes this growth to the emergence of new NFT marketplaces and platforms and the growing interest from mainstream investors and collectors.
Crypto Funding Shifting from CEFI to DeFi
The recent collapse of several centralized exchanges and platforms has led to a shift in funding from centralized finance (CEFI) to decentralized finance (DeFi). According to Coingecko, this trend will continue as investors become more aware of the risks associated with centralized platforms. DeFi platforms will likely become more popular as they offer a more transparent and secure way to trade and invest in cryptocurrencies.
Binance Reassures Users on Voyager Deal
Recent headlines have raised questions about the deal’s future between Binance and Voyager Digital. However, CZ, the CEO of Binance, has reassured users that the company still supports the Voyager deal. In a statement released to Cryptopotato, CZ explained that the deal is still in progress and that Binance is committed to working with Voyager to expand its reach and services.
Web3 Platform Raises $10.5 Million
Few and Far, a web3 platform that helps creators with digital artwork, has raised $10.5 million in a recent funding round. According to Tech Funding News, the Platform aims to help artists and creators monetize their work and gain greater control over their content. The funding will expand the Platform’s services and develop new tools and features to support creators.
Crypto Hedge Fund Trends for 2023
Looking ahead to 2023, a new report from Blockworks suggests that the crypto hedge fund industry is set for significant growth. The report predicts that assets under management (AUM) for crypto hedge funds could reach $150 billion by 2023, up from around $3 billion today. The report also notes that hedge funds will likely shift their focus from Bitcoin and Ethereum to newer cryptocurrencies, such as Solana and Avalanche, offering faster transaction speeds and lower fees.
These stories highlight the crypto industry’s ongoing evolution and growing importance in the broader financial landscape. As always, staying informed and up-to-date with the latest trends and developments is key to making informed investment decisions and staying ahead of the curve.