2023 Predictions for the Crypto Market: Prediction #2
There’s no doubt that the crypto market is similar to a living-breathing creature, constantly growing and changing. Part one of the blog examines several predictions for the crypto market as we head further into this new year.
Prediction #2: Further Tokenization of Financial Assets
Another growing trend is tokenizing financial assets, much like the cryptocurrency market. The tokenization process is when tokens or surrogate values replace specific sensitive data elements. Essentially, the asset becomes encrypted, which protects the data and ensures it does not fall into the wrong hands.
Ultimately, this means that more real-world assets might find their way onto the blockchain, where they can still grow in value and produce yields while staying secure. For example, stablecoins powerfully illustrate how this can become a reality. Stablecoins are digital tokens with a pegged value relating to a fiat currency or precious metals, making them more of a stable investment.
Some of the most popular stablecoins have garnered much attention because of their market capitalization, meaning the more limited the supply, the higher the demand. The token known as DAI of Marker and USDC from Circle has steadily maintained its position as an asset that can handle fluctuating market circumstances.
Hungry for more? Join me each week, where I’ll break down complex topics and dissect the latest news within the cybersecurity industry and blockchain ecosystem, simplifying the world of tech.