Throughout 2022, we have witnessed a blurring of reality and fantasy in the crypto industry. Despite many dramatic developments, crypto assets have not stopped evolving. The best footnote of the year for crypto assets is the vitality and vitality of change and evolution.

As speculators remove their masks amid the turmoil in the market, it is time to calm down and re-examine the future of crypto assets. Based on the current situation of crypto assets, this paper analyzes the industry development and opportunities to help global investors determine the future direction in the new round of the wind.

1. Strengthen crypto regulation to ensure transaction security

Calls for cryptocurrency regulation are louder than ever. This is clearly a direct response to the turbulent markets of 2022. So 2023 will see tighter regulation and enforcement.

At the regulatory level, the European Union has passed the Crypto Asset Markets Regulation Act (MiCA). “MiCA is a landmark piece of legislation that represents the crypto asset market’s transition from ‘crazy growth’ to ‘compliance regulation’ and into the era of unified regulation,” said analysts at the exchange. For crypto asset trading platforms around the world, it is also an important signal that the industry is here to stay.

2. Shift to decentralized finance and DeFi going mainstream

The series of negative events in 2022 has resulted in a significant loss of confidence in the crypto market. In order to better protect their assets, investors will pay more attention to the operation of decentralized systems. Additionally, there is increasing institutional attention to DeFi, particularly in payments, AML solutions, and other areas where international banks and financial institutions have started to get involved.

According to incomplete statistics, by 2022, Citigroup, Blackrock and other financial services companies had invested more than 1 billion yuan in Defi platforms

U.S. dollar. Strong interest from institutional clients has also boosted investor confidence in DeFi. Based on this, it is estimated that DeFi could become mainstream and start a market explosion in 2023.

3. The central bank digital currency (CBDC) will accelerate research and development and further expand experiments

The development of CBDCS worldwide is being driven by a sharp increase in demand for cross-border payments and volatile shocks in the cryptocurrency market. More than 100 countries and regions around the world are currently examining central bank digital currencies (CBDCS). In August, the European Central Bank suggested that CBDCS could be the “holy grail” of cross-border payments. Some central banks are even considering offering CDBCS on physical cards.

Take the United States as an example. As early as last September, the United States released the US CBDC System Technical Assessment, which formalized the US CBDC system’s policy objectives and technical design plan. In interviews with exchange users, more than 70 percent of users from five global regions agreed that “CBDCS will have greater potential and will even revolutionize the financial industry in the next five years.”

4. Weaken individual investments and build a diverse portfolio ecology

Market turmoil is a common occurrence in finance, but it’s unlikely to turn away fortunes. For the users right now, how to ensure the steady increase in revenue during the ups and downs of the market is the key thinking.

In 2023, users will start to diversify their investment risks from “single investment” to “portfolio investment”. “We often get a lot of questions from users about their investment portfolios. Our advice is to build a diversified portfolio ecosystem that suits them, achieve a balance between solid returns and diversified investments, and scientifically allocate assets,” said an investment advisor to the exchange.

5. Game Fi’s popularity isn’t diminishing and it’s worth looking forward to

As the blockchain field has been updated iteratively, some novel moves have emerged. Game Fi integrated with digital assets is the product of the new business model. It is estimated that Game Fi game projects will become more popular in 2023 and become a hotspot for market investment. Recently, exchange released the information about “Belem is about to shock the launch of Meta Universe Game (TUG)”. This is a testament to the popularity of Game Fi.

The advent of Game Fi offers gamers a new way to not only use digital assets, but also to earn additional assets. The exchange also has a number of users interested in game projects. These users have commented on the exchange forum board: “You can make money while playing games, which can only be achieved with Game Fi.” Kenneth, the market operator of the exchange, is also optimistic. She argues that “the game brings its own traffic,” noting, “The game brings its own community, attracting a player means attracting a strong community behind it. “Our team expects the gaming space to show impressive growth.”

No one is born perfect, and the same goes for crypto assets. But there is no doubt that crypto assets offer a new path full of opportunities for the global financial industry, such as innovative financial services, convenient payment methods and of course great wealth, all of which depend on the crypto asset ecosystem.

Despite all the uncertainty, the beauty of crypto is that despite all the challenges, it is still a market with extraordinary potential. In 2023 we can foresee that this dynamic and innovative field will eventually bring back players like who are still on the wave of technological innovation and long-term thinking.

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