April 13, 2023
By Murtuza Merchant
Are you prepared to uncover the most influential crypto trends that could catapult your investments in 2023? Success in crypto trading is deeply rooted in the stories that drive the market.
With the ever-changing crypto landscape, it is essential for investors to keep up with the latest developments. In this article, we explore the top five most promising crypto trends that could offer exceptional returns in the coming weeks and months.
2023 has already seen numerous trends, with new ones emerging regularly. Stay informed and ahead of the curve with the following narratives:
Liquid Staking Derivatives (LSD) narrative
As the Ethereum Shanghai Upgrade approaches, native tokens of LSD platforms may experience substantial growth. The upgrade will enable Ethereum network validators to access staked tokens and rewards, currently unattainable, potentially boosting confidence in the Ethereum blockchain and acting as a catalyst for LSD protocols.
LSDs offer a novel approach to earning interest on digital assets, particularly Ethereum, by bypassing traditional staking processes and allowing for increased liquidity. Top LSD tokens with high return potential include Lido DAO ($LDO), Frax Share ($FXS), Rocket Pool ($RPL), Ankr ($ANKR), ssv.network ($SSV), StakeWise ($SWISE), Stader ($SD), Bifrost ($BNC), and StaFi ($FIS).
With the Arbitrum airdrop behind us, investors are searching for the next big opportunity in ZK-rollups. zkSync and Starknet, two anticipated airdrops, maybe even more significant than Arbitrum. These Layer 2 solutions scale the Ethereum blockchain, making it faster and more cost-effective by using Zero-Knowledge (ZK) rollups.
As Ethereum powers increasing dApps, efficient scaling solutions are vital. Top tokens poised to benefit from ZK momentum include Immutable ($IMX), Mina ($MINA), Loopring ($LRC), dYdX ($DYDX), Celer Network ($CELR), SysCoin ($SYS), and Dusk Network ($DUSK).
Perpetual Decentralized Exchanges (DEXs) narrative
As regulators scrutinize crypto and centralized exchanges, decentralized exchanges gain traction, particularly perpetual DEXs. These platforms allow users to trade futures, open long and short positions, and utilize leverage directly from their wallets.
Top PerpDEX tokens with growth potential include GMX ($GMX), dYdX ($DYDX), Gains Network ($GNS), Vela Exchange ($VELA), Level Finance ($LVL), MUX Protocol ($MCB), Mummy Finance ($MMY), and Perpetual Protocol ($PERP).
Artificial Intelligence (AI) narrative
AI has emerged as a dominant crypto trend, with applications like ChatGPT gaining widespread popularity. AI’s significance extends beyond the Metaverse and NFTs, as it is a well-established, independent industry. Tech giants like Microsoft, Google, and others are likely to develop and announce their own AI applications, potentially driving up the value of AI tokens.
Promising AI altcoins include The Graph ($GRT), Ocean Protocol ($OCEAN), SingularityNET ($AGIX), Injective ($INJ), Fetch.ai ($FET), iExec RLC ($RLC), Artificial Liquid Intelligence ($ALI), Numeraire ($NUM), Covalent ($CQT), Measurable Data Token ($MDT), DeepBrain Chain ($DBC), CryptoGPT ($GPT), and AIPad ($AIPAD).
As the US tightens crypto regulations, China is gradually taking a more lenient stance. The People’s Bank of China recently injected $92 billion into the economy to stimulate growth after abruptly abandoning the zero-Covid policy. Concurrently, Hong Kong announced plans to ease cryptocurrency regulations and become an Asian hub for the industry, a move seemingly supported by mainland China.
DBS, Southeast Asia’s largest bank, reported an 80% increase in Bitcoin and a 65% increase in Ethereum trading on its crypto exchange in 2022, with its customer base doubling. This positive Asian sentiment has impacted several China-related tokens favorably. If the Chinese narrative continues, the recent pullback may present an opportunity for investors.
Top Chinese coins poised to benefit from positive Asian news include Conflux ($CFX), NEO ($NEO), Vechain ($VET), Filecoin ($FIL), QuarkChain ($QKC), SelfKey ($KEY), Flamingo ($FLM), Linear Finance ($LINA), and IRIS Network ($IRIS).
The crypto narratives mentioned above will not unfold simultaneously. Some, like AI and Chinese tokens, have already experienced growth but could see further positive momentum this year. In the coming weeks, the Ethereum upgrade may spotlight LSDs and their native tokens. When zkSync or Starknet initiates an airdrop, ZK tokens will likely gain traction.
To stay ahead in the market, create a watchlist on Trading View and monitor the leader (the coin with the highest market cap) in each category, as it will often lead the rally, followed by smaller tokens. Investing in tokens exhibiting strength rather than weakness is crucial when trading crypto.
Keeping an eye on strong crypto narratives provides an edge to outperform the market, ensuring you’re invested in the right tokens at the right time.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.