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    7 Crypto Trends That May Explode in 2023

    Cryptory.net - Which crypto trends are likely to boom this year? Let’s take a look.

    Decentralized exchanges

    Centralized exchanges keep their systems off-chain, meaning they operate as escrows for their clients, and transactions are not recorded on the blockchain. This leads to massive breaches of security and unsafe storage of information, funds, and private keys. In the past, there have been several attacks that led to the collapse of major exchanges such as Mt.Gox (2014), Bitfinex (2016), Coincheck (2018), and most recently the FTX and Alameda Research empire of Sam Bankman-Fried. 

    After the recent controversies surrounding CEXs, the community has understood the importance of “self-storage” assets. Applications and decentralized exchanges (DEXs) are getting more attention than ever despite some of their drawbacks. DEXs now also provide full of trading services like CEXs like Perpetual, Spot, Margin, Derivative, Option, etc. Derivatives on DEXs still have many weaknesses and are somewhat difficult to reach for users, however, with the continuous improvement of dApps, DEXs have become more friendly to users and compete for market share with CEXs. Some notable projects that can be mentioned are GMX, dYdX, Synthetix, Wombat Exchange, ect.

    Layer 2 & Ethereum

    Ethereum’s transition from PoW to PoS has contributed to making the network more user-friendly, while fulfilling its goal of deflation. The Merge caused a reduction in ether’s supply, making it a deflationary asset, with burn-rate 741K ETH/year.

    ETH developers are working to ensure that the transaction validation is well distributed, while also allowing users to withdraw staked ETH (slated for March 2023).

    The Surge is the next Ethereum’s update which aims to boost transaction processing speed on the network. Along with that is the proposal EIP-4844, which will enable the proto-danksharding mechanism to increase its capacity and bring down gas fees. This brings many benefits to Layer2, especially Arbitrum and Optimism. These two networks are owning a large ecosystem and attract a lot of investment cash flow. Layer-2 is considered as a promising land of the crypto market this year.

    Decentralized Social (DeSoc) – SocialFi

    Decentralized Social (DeSoc) or SocialFi enables discovery, connection, and collaboration around common interests while maintaining your privacy. While Web3 is still in its infancy, it could completely change the way we use the Internet. The next version of the Internet, called Web3, is definitely what we need and can change digital socialization. 

    Taking advantage of Web 3.0, social networking platforms will become more decentralized, and above all, protect user privacy. DeSoc is now divided into three layers: user interface, social graph, and content storage. With the goal of upgrading social networks to a more advanced version, SocialFi has attracted the attention of technology giants such as Twitter, Facebook (META), Instagram, Reddit, Discord, etc.

    Reddit launched the NFT Avatar collection, which already has 3 million unique users. Meta is creating an NFT Marketplace that will be integrated into Facebook and Instagram. Elon Musk also integrates $MASK on Twitter for payment support. Musk even expressed his ambition to integrate more apps to make Twitter into a super app. SocialFi is clearly one of the trends to look forward to this year.

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