A recent survey referenced a crypto-native community to determine what could be in store for the industry this year. Identifying high-value cryptocurrencies and blockchain applications takes both courage and foresight, which is why early crypto adopters could be a good gauge of what’s to come in 2023.
Over 1,000 people took the survey and shared what they were worried about and what they were excited about this year.
More than half of the respondents identified DeFi as the category of projects they most want to see on CoinList. Layer 1 and Layer 2 blockchains were the second most requested category, followed by gaming. Cross-chain infrastructure ranked fourth, with around 37% of respondents opting in, while NFTs were requested by just over 26% of respondents.
DAOs, which have seen a massive surge in popularity over the past year, have been endorsed by less than 20% of CoinList’s users. At the same time, governance tokens, touted as one of crypto’s most innovative uses, were requested by just 15% of respondents.
These results, analyzed by CryptoSlate, confirm the current market sentiment. Despite its massive plunge over the past year, the DeFi sector is still one of the main drivers of the crypto market and could be poised for a rebound in 2023.
In a separate but related question, nearly half of respondents said they believe DeFi and gaming would be the two megatrends driving widespread crypto adoption.
A deeper dive into these sectors shows that seasoned crypto users have a keen eye for growing networks.
When asked which blockchain they would most like to interact with outside of Ethereum, the top-rated options were among the top-rated cryptocurrencies on the market. The blockchains of choice for CoinList respondents were Cosmos (ATOM), Binance Smart Chain (BSC) and L2 Rollups and sidechains Arbitrum, Polygon and Optimism, each garnering around 40% of the votes.
Last year’s growth champions, Solana and Avalanche, were the blockchains of choice for just 17% and 13% of users, respectively. Polkadot ranked slightly higher, being chosen by 29% of respondents.
Newcomers to space Sui and Aptos were chosen by over a third of respondents, showing new projects may have a chance to compete with established chains for a piece of the market in 2023.
However, in order to capture a significant chunk of the market, more real-world applications need to be brought to market. More than half of respondents cited this as the main issue preventing widespread adoption. Safety was also a top concern for more than half of those surveyed, while regulatory clarity ranked third, with 43% citing this as a pressing issue for the industry.
Regulatory uncertainty was a recurring motif in the survey, with over 41% of respondents saying it was their top concern when investing in crypto. Market manipulation ranked slightly higher, with just over 45% of respondents citing it as a pressing issue.
Given the many fiascos the industry has endured over the past year, it’s no surprise that security of funds was the top concern for nearly 40% of respondents. Liquidity, or lack thereof, was a pressing concern for around a third of respondents, as was price volatility.
Nonetheless, over 62% of respondents said they plan to increase their allocation to cryptocurrencies. About a quarter of respondents said their allocations would remain unchanged, while just 11% said they would exit their holdings.
Plans to increase their allocation to cryptocurrencies do not mean respondents believe the market will return to its 2022 highs. Over 26% of CoinList respondents believe Bitcoin will fluctuate between $20,000 and $30,000 in 2023. Just over a quarter believe it will reach between $30,000 and $50,000, while less than a fifth believe it will fall below $20,000.