Threats to crypto have never been greater, but mass adoption is imminent
2023 is proving to be a pivotal year for the crypto space, with many events converging to shape its future trend and adoption in the near term. While there are many variables at play, here are three key factors that are poised to impact the crypto market throughout 2023.
In terms of supply increases, the following two major events could potentially affect the crypto market.
In April 2023, Ethereum will undergo a Shanghai upgrade to completely transition into a proof-of-stake (PoS) blockchain, which is expected to significantly improve the network’s performance. The PoS journey started with the launch of the Beacon Chain in December 2020, during which users deposited over 500,000 ETH into the staking smart contract. Presently, over 17.5 million ETH is secured in the contract, effectively reducing the total circulating supply currently locked in the Beacon Chain contract.
Following the upgrade, users will be able to withdraw some of that ETH that has been locked up since launch, sparking concerns about a potential increased supply and subsequent downward pressure on ETH’s price. However, despite concerns, two key factors suggest that such a scenario is unlikely:
Source: Dune
The second supply increase that could impact the market pertains to Bitcoin’s (BTC) upcoming release of coins recovered from the infamous Mt. Gox hack of 2014. At that time, Mt. Gox was a leading Bitcoin exchange, accounting for 70% of the global crypto trading volume. However, in February 2014, a tragic hack resulted in the loss of over 850,000 Bitcoins, causing widespread shock throughout the crypto communities and ultimately leading to the closure of the exchange.
Since the hack, former Mt. Gox holders have been in a prolonged legal battle to retrieve
Read more on cointelegraph.com
