Yet, here we stand, our heads held high. Sure we may have a tear or two falling down our faces, but our conviction remains untouched! 

Crypto is still the most exciting, promising opportunity in the world and we plan to make the most of it in 2023. 

Disclaimer: Not financial nor investment advice. Everything stated in this report is for entertainment purposes only. Any capital-related decision you make is your responsibility and your responsibility only.

Here are our 9 boldest predictions for the crypto market in 2023.

 

TLDR: Too long didn’t read - read the report for extra alpha ;)

• The market remains relatively quiet through 2023, but a rally will take place, sending BTC and ETH towards $35,000 and $3,475 respectively.
• The foundations are set for ETH to flip BTC as the #1 cryptocurrency.
• The recent collapse of Luna, FTX and more has set the stage for a second DeFi summer. DeFi will be the biggest winner of 2023.
• The decentralised exchange Uniswap will reach new heights in 2023, reaching a token value of $13.
• The derivatives exchange dYdX will capture the futures market share lost by FTX and pull a 7X return.

 

1. 100%+ rally but no ATHs   

Geopolitics is as stable as a house of cards. Trillions are getting wiped from the stock market, and countries all over the world are facing energy crises.

Situations like this trigger survival mode. People are less concerned with their portfolios, and more worried about keeping the lights on. This is why we don’t expect the market to rally into new ATHs.

However, crypto prices have been supressed due to the FTX fallout. As soon as this starts fading into the background we’re expecting a good relief rally (don’t confuse this with a bull market). If we are to time it, we would say it happens in Q1/Q2 of this year.

 

2. BTC will surge back to $35,000

Based on the relief rally, we predict a $35,000 BTC.

Whether the bottom is in now, or we see more pain towards $14,000, the rally should push us to the $30,000 level of resistance and then overshoot towards $35,000.

 

3. ETH will outperform BTC and reach $3,475

This is the only ETH chart you need to see.

Today, ETH trades at support and has managed not to set a lower low despite BTC setting one.

We believe $1,000 to $1,200 is where ETH bottoms. It’ll then shoot towards $2,200 in the first half of the year, and then flip that resistance into support and rally to $3,475.

 

4. The Ethereum flippening becomes clear to all

The stage has been set my friends. See how ETH managed to stay stable while BTC set a new low? This is what we call outperformance, and it is for good reason.

We at Cryptonary believe ETH will flip BTC as the number one cryptocurrency. Two reasons why:

1. First, ETH just does more. It’s like that smarter cousin your parents keep comparing you to. BTC is like gold. Tried and tested. But ETH is like Wall Street on a blockchain. Smart, and continuously innovating. Let me ask you, Gold vs the Financial Internet, which would you take a bet on? Exactly.
2. Secondly, the shift to proof of stake just made ETH the prodigal son for ESG investors (socially concious investors). These crowd-pleasing socialites are under serious social pressure to look good. One of the biggest factors keeping them away from BTC is the silly “bad for the environment” narrative. 

Ethereum doesn't have that issue.

Now, the flippening won't happen in 2023, but the foundations are set and slowly solidifying and we expect the ETH/BTC ratio to rally to a 4-year high of 0.12 (flippening happens at 0.16 and we're at 0.077 now).

 

5. DeFi outperforms ETH and hits all-time highs

Remember DeFi summer of 2020? Let me set the scene. Apps that enable lending and borrowing pop up from the depths of web3, billions of dollars start flooding in, and everyone and their mother are strapped in for the ride.

Millions catch on to what could be possible with blockchain technology and foundations for a decentralised financial system are set.

However, over the last couple of years, DeFi has consistently underperformed against ETH. You can see this through DPI/ETH (a DeFi Index priced in ETH).

The was all caused by the extreme over-valuation reached by DeFi in late 2020, plus the shift of attention to other Layer 1s.

Today, DPI has entered a range for the first time in years. Eventually, it’s going to break out (charts don’t just range forever).

The ongoing fall of CeFi is an extra point earned by DeFi as well as it’s paving the way for funds to move from the old system to the new one. This will help DeFi start outperforming once again and we finally get another taste of a DeFi Summer 2.0.

Exciting right? Let’s just hope the regulators don’t f*ck this up.

 

6. DEX volumes rocket & UNI rises to $13

When FTX fell, crypto users all over the world panicked and scurried to secure their funds. What did they do? Send their tokens to Binance.

Now look, we don't have a problem with Binance, but did people learn nothing from this shit?! Centralised exchanges are not the way people! The only way to truly control your funds is self-custody and DeFi.

Enter Uniswap.

Uniswap is DeFi’s Binance. If you want to buy, sell or trade in DeFi, Uniswap’s the spot!

Since the chaos, we’ve already seen a 150% increase in users and don’t expect this to slow any time soon.

[caption id="attachment_259921" align="aligncenter" width="2214"] Uniswap's Daily Active Users[/caption]

UNI to $13 in 2023

7. DYDX will pull a 7X to $7

Man, Sam Bankman-Fried sure did mess things up. Thankfully, in the wake of his mistakes, an opportunity has presented itself.

FTX was the go-to place for futures trading. Now they’re gone, where will people go? 

There are three good places to trade futures in crypto; DYDX, GMX, and Perpetual Protocol.

Now, all three have their place, but only one is going to come out on top and take hold of the newly available market share. Who will that be?

Our bet is DYDX. Our team did a deep dive into all three, and all factors point towards a dominant year for DYDX.

Trading volumes are higher. The user experience is the cleanest, and they have the most traction of the three. Not to mention, it’s the in-house choice for Cryptonary’s resident traders!

[caption id="attachment_259922" align="aligncenter" width="2206"] *Do you see how volumes increased in November? This lined up perfectly with the fall of FTX*[/caption]

We’re pulling for a $7 DYDX in 2023.

8. Layer 2s continue to shape the future of crypto

Did someone say free money? Well, that’s what we have for you. One of the biggest opportunities of 2022 was being a part of a Layer 2 airdrop for Optimism.

A quick summary for the newbies out there, Layer 2s are applications built on a blockchain to make them more efficient, faster, and more affordable.

People earned anywhere between $1,200 and $12,000 from Optimism airdrops in 2022, and we expect more opportunities just like this to present themselves in 2023.

There are two primary contenders to keep an eye on: ZKSync and Arbitrum. Expect both to drop tokens in 2023. 

Which one of these L2s will the big winner of 2023. We have a report incoming this soon. Hint: its not Optimism! 

9. SOL, how low can it go? $5

Look, we love SOL as much as the next guy. We called SOL at $10 and rode it all the way to $250, but the way things are going… it doesn’t look good.  

With a 98% drop from its peak, developers looking at other chains, NFT inventors contemplating suicide, and builders focusing on Layer 2s for other ecosystems, 2023 will certainly not be the year of SOL. 

We expect a further drop to $5 in 2023.

[caption id="attachment_259925" align="aligncenter" width="2212"] Developers & users on the Solana blockchain[/caption]

That said, there’s always a play to be made. We’re going to SOLdier on and bet big on a comeback in the mid-2020s. 

 

Cryptonary’s Take

Well done friends! You’ve read all 9 predictions for 2023, and we’re sure you’re a whole lot more prepared for the year. 

Now, everyone's risk appetite, goals, time horizons, and personal circumstances are different. There's no such thing as the perfect portfolio or strategy. You need to make your own choices and invest how you see fit.

That being said, here’s what we plan to do in 2023! 

Cryptonary’s Action points

1. Dollar cost averaging (DCA) into fundamentally sound assets is what we preach. As much as we look to outperform the market by picking promising altcoins, we invest in BTC on a monthly basis. With the concept of the ETH flippening also looking likelier as the years go on, we will also be DCAing into ETH in 2023. 
2. DeFi summer is incoming, and aside from ETH, one of the clearest plays is UNI. We’ll be riding the unicorn all the way through 2023, consistently buying under the $13 mark.
3. Our second DeFi bet is DYDX! Our goal is to start DCAing now, and then look to buy more atthe $0.50 mark and look to profit at $5 (7X+). We will be holding onto some DYDX as its just a solid all around asset we believe in.
4. The most risk-free play of the year. Partake in the likely Arbitrum & ZKSync airdrops. We have tutorials prepared and will be sharing them with all of you. 
5. SOL is going down in 2023. When it hits the $5 mark, we’ll start buying in. This isn’t a short-term play. We’re betting on the loyalty of enthusiasts over a multi-year timeline.

That’s our 2023 action plan. Let us know how many of our predictions you see coming to fruition, and share your predictions in our community! 

Thanks for reading    [ 🔎 - A ]