We are halfway through 2023, and it looks like it will be a year of slow growth. It might still take a while for the market to touch new highs. The crypto market has struggled in recent months, with prices falling sharply. However, there are some positive signs that the market may be bottoming out.
Positive Signs in Crypto Market Amidst the Volatility
One positive sign is the increased number of active addresses on the Bitcoin network. The number of active addresses has increased by 7% in the past week, which suggests that more people are using Bitcoin.
Another positive sign is the increase in ETH locked in DeFi protocols. DeFi protocols are decentralized finance applications allowing users to lend, borrow, and trade cryptocurrencies without needing a central authority. The amount of ETH locked in DeFi protocols has increased by 3% in the past week, which suggests that people are still using Ethereum for DeFi applications.
Of course, it is essential to remember that the crypto market is still volatile. Prices could still fall further shortly. However, the positive signs suggest that the market may be bottoming out.
Here are some other positive signs for the crypto market:
- The launch of new crypto products and services: Several new crypto products and services have been launched recently, such as Coinbase’s new base blockchain and the Dogecoin Foundation’s new Dogecoin wallet. These new products and services could attract new crypto market investors.
- The increasing adoption of crypto by businesses: Several businesses, such as Twitter and Microsoft, are now accepting cryptocurrencies as payment. This increasing adoption by businesses could help to legitimize the crypto market and make it more accessible to mainstream investors.
- The growing regulatory clarity around crypto: Governments worldwide are starting to provide more regulatory clarity around crypto. This could attract institutional investors to the market.
The cryptocurrency market has been through worse. Whether it was the Terra-Luna crash, the aftermath of the Russia-Ukraine war, tighter tax rules, or the collapse of FTX, the crypto market has been through the worst storms in the past few years. The burned-out cryptocurrency market got a fresh start in 2023 and showed signs of improvement and an upswing.
Crypto experts believe that experienced or novice buyers can look to invest in blue-chip cryptos like Bitcoin or Ethereum through systematic investment planning (SIP). This is where LotusX’s Thematic Investment Plan comes in handy. Investors shouldn’t have more than 5% of their wealth in cryptocurrencies.
Overall, there are some positive signs for the crypto market. However, it is essential to remember that the market is still volatile, and prices could fall further soon. Investors should only invest what they can afford to lose. With all the volatility and slow economic recovery worldwide, watching how the market moves carefully is best. Now is a good time to pay close attention to the details of the crypto market and not make any hasty or risky decisions.