2022 was not a great year for cryptocurrencies and web3 businesses due to the turbulence experienced in the industry, especially as the year came to an end. There has been a lot of talk about the collapse of cryptocurrencies, web3, and the blockchain, but that has not happened yet. It does not look like it will happen any time soon unless there is a monumental shift in the industry. Here’s a look at some reasons why starting a crypto business could be a good idea this year.
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The Resiliency of the Industry
As mentioned, 2022 was a bad year for the industry, but things did not become as bad as many people thought they would. Bitcoin’s value fell from its high of over $60,000 to a low of $16,000 last year. One of the most remarkable things about Bitcoin is that even with the price fall, it still managed to outperform PayPal, Meta, and Tesla over the last 12 months.
We have also seen the price of bitcoin increase in the last month, and analysts say that it will keep going as it corrects itself. If you are thinking of starting a crypto business or investing, now would be the best time before the price reaches its previous highs again.
The Resilience of Decentralized over Centralized Finance
It is also worth noting that projects that were antithetical to the principles of the blockchain were hit the most last year, with many outright collapsing. Remember that the blockchain is built to remove the need for trust because it is a permissionless system.
The core issue is that many of the companies that collapsed last year went against this main principle, asking users to trust them and then taking advantage of that trust. The solution, which is at the heart of the companies that survived, is using protocol-based, smart contracts and on-chain crypto. Companies that did this also embraced decentralized finance where users did not have to hand all their money to a single entity, which requires users to trust it.
The main focus this year should be on creating decentralized projects and companies to make DeFi possible, accessible, and liquid enough. If you are working on such a project, do consider using a crypto PR service to get the word out, as these services will distribute your press release to tens or even hundreds of online publications.
Blockchain Sectors are Expanding
If we look at the metrics of crypto companies, we can see that the different sectors are expanding, with some that have previously seen slow growth also experiencing growth. The biggest sector, and one that requires more players to join, is DeFi. It is then followed by gaming, consumer CeFi, chain infrastructure, and dev infrastructure.
There is also a lot of investment going into these different sectors, with gaming, chain infrastructure, and DeFi receiving the most investments. This is likely because it is easy to see their utility.
Analysts and experts remain bullish on crypto and the blockchain in 2023, many of them going as far as saying this could be a great year to start a business in the industry. We can expect more investments in different sectors because, despite the happenings of 2022, this market remains strong.
