After a tumultuous 2022, 2023 could still hold surprises in the crypto sector. The KPMG firm is risking a few predictions, in particular on Bitcoin, NFTs, and metaverses.
The past year has been particularly tough for the crypto world. The bankruptcy of the American platform FTX, which collapsed in the space of a few days in November, has permanently sent cryptocurrency prices down, with bitcoin falling 75% since its peak a year earlier. And the domino effect of this bankruptcy “probably has not come to an end”, underlines KPMG, author of a report on “Perspectives Cryptos” unveiled.
The audit and consulting firm explores the developments that could occur in 2023 on the crypto planet. First of all, he notes that the Bitcoin and Ethereum computer protocols confirm their position as leaders, “one as a neutral and alternative currency”, decentralized and not controlled by a State, the other as a reference programmable blockchain. , on which more than 600 applications have already been developed.
And this trend should continue to strengthen this year. Bitcoin could benefit from persistent geopolitical instability and the economic difficulties of several states: “It is in countries in crisis, such as Ukraine or Lebanon, that Bitcoin mainly demonstrates its value proposition”, believes Stanislas Barthelemy, Consultant at KPMG. Many Lebanese turned to cryptocurrencies when banks prevented their customers from withdrawing their funds. Cryptocurrencies, borderless and difficult to censor, allowed up to $100 million in donations to be quickly transferred to Ukraine at the start of the war with Russia.
Bitcoin, a competitor to traditional currencies and payment systems
Bitcoin could further benefit from growing competition between currencies, exemplified by Saudi Arabia’s willingness to accept the yuan for oil trading alongside the dollar. Cryptocurrency: “could see its place grow on an international scale, as a means of cross-border payment and as a neutral and inalienable currency”, assures KPMG.
Finally, the Bitcoin blockchain should see technological innovation continue on its infrastructure, with the potential arrival of stablecoins on its network, these relatively stable cryptocurrencies, that replicate the price of a currency, such as the dollar. These stablecoins, associated with the Lightning Network, a technology allowing to carry out transactions quickly and on a large scale on the Bitcoin network, could come to compete with traditional payment systems.
Decentralized finance booming on Ethereum
Ethereum, for its part, remains the reference blockchain for new crypto projects and should still attract new companies. Its potential competitors are struggling to emerge. Some encountered significant difficulties last year, such as the multiple service interruptions recorded by the Solana blockchain. The success of alternative blockchains is therefore “improbable” according to KPMG, given the level of adoption of the Ethereum network.
It is in particular on this blockchain that decentralized finance (DeFi) is developing. DeFi brings together a whole host of applications, allowing for example to grow your crypto capital or loans of crypto-assets between individuals without going through an intermediary such as a bank. Booming, DeFi represents one of the main trends to follow in 2023. Still far from the radars of regulators, it abounds without institutional players being able to seize it.
The European Union must tackle a new text on DeFi, after adopting the MiCA regulation which regulates players offering services around crypto-assets. This new decentralized finance still has “many areas for improvement”, particularly in terms of cybersecurity, points out KPMG.
NFTs and the metaverse are not dead
Another major trend to follow this year: is NFTs and metaverses. “Victims of over-mediatization in 2022”, according to the consulting firm, remain “a vector of innovation that attracts companies in different industries”.
Non-fungible tokens (NFTs) grew disproportionately in the first half of 2022, before experiencing a 90% drop in trading volume. However, the number of users continued to grow, particularly via the industry-leading Opensea platform.
Beyond the media stunts, the French unicorn Sorare, specializing in NFT cards bearing the image of sportspeople, illustrates the success that these digital tokens can meet. In the gaming and luxury sector, in particular, companies continue to position themselves and develop strategic thinking around the use of NFTs.
As for metaverses, they aroused strong interest from companies last year, but their added value sometimes seems “fuzzy and poorly understood”, notes Stanislas Barthelemy. “Many have a technological core that is ultimately based only on virtual reality”, without appropriating the tools offered by the blockchain, such as the notion of digital property.
The emergence of a sustainable business model in the metaverse will take time. The gamification of the user experience seems particularly promising. Owning virtual land within a metaverse should allow brands to create a new channel “to enrich and personalize the customer relationship,” explains KPMG. In the short term, the metaverse nevertheless struggles to attract crowds in the long term.