The Top 10 Crypto Stories of 2023
Another year is nearly concluded, and crypto is making a comeback, folks!
This year has been an emotional rollercoaster for the majority of us:
While this year might not have unfolded with the same level of excitement as the previous one — recall FTX? Terra? Celsius? — it doesn’t diminish the fact that we’ve had an extraordinary year! Here are CMC’s selections for the top 10 crypto narratives of 2023.
Join us as we highlight the cryptocurrency revolution, one newsletter at a time. Subscribe now to receive daily news and market updates directly to your inbox, alongside our vast community of subscribers (yes, millions adore us!) — so, what are you waiting for?
Table of Contents
- #10: SocialFi Merges Cryptocurrency and Social Networking
- #9: Real-World Assets Create a Genuine Impact
- #8: Ethereum Upgrades Itself Again
- #7: Tether Reinvents Itself
- #6: Coinbase Makes A Stand
- #5: CZ Steps Down
- #4: SBF Rides Off Into Prison
- #3: AI Sends Everyone Into A Frenzy
- #2: Ordinals Frenzy On Bitcoin
- #1: Wen Spot Bitcoin ETF?
#10: SocialFi Merges Cryptocurrency and Social Networking
In the midst of 2023, as Bitcoin meandered within the $20,000 range, a fresh frenzy seized the focus of the cryptocurrency markets: SocialFi.
Friend.tech became the newest, hottest platform everyone wanted in on.
For several weeks, Crypto Twitter feeds surged with invite codes and “alpha for keyholders.”
The excitement waned, but brace yourself for Friend.tech 2.0 in 2024.
🫰✌️ pic.twitter.com/ePvV2XKASo
— friend.tech (@friendtech) December 19, 2023
Read also: What is SocialFi?
#9: Real-World Assets Create a Genuine Impact
Real-world assets (RWA) have asserted themselves as a prominent storyline in the 2024 bull market. In our explainer of the real-world asset sector, we underscored the potential for substantial growth in this vertical.
And indeed!
Numerous nations have initiated real-world asset initiatives:
- The Philippines inaugurated the inaugural first tokenized treasury.
- Singapore is broadening initiatives to tokenize assets.
- Brazil is strategizing a tokenization program slated for 2024.
Major financial institutions, including UBS, are entering the arena of asset tokenization. Additionally, crypto-native protocols like MakerDAO have undergone a substantial resurgence courtesy of the RWA storyline. Anticipating increased institutional acceptance, real-world assets are poised for significant expansion in 2024.
#8: Ethereum Implements Another Round of Upgrades
Ethereum experienced a relatively subdued year overall, with its most significant narrative unfolding right at the beginning of 2023.
The imminent Shapella upgrade ignited an initial excitement surrounding the Liquid Staking narrative, prompting the community to hurriedly prepare. Shapella ultimately empowered stakers and validators to unstake and withdraw ETH rewards, signifying Ethereum’s complete transition into a proof-of-stake chain.
Here’s everything you need to know about the Shapella upgrade.
It officially went live in April, marking a highly anticipated milestone. However, Ethereum took a backseat for the remainder of 2023 as Bitcoin ETF mania reached a fever pitch. Nevertheless, don’t be mistaken – the next upgrade is already in progress: EIP-4844 has the potential to elevate layer-2 adoption to new heights.
Shapella is live on the network and withdrawals are being processed
Next major feature add is EIP-4844 as part of the 'Dencun' network upgrade (hopefully later this year) which will greatly enhance the scalability of rollups on Ethereum
Ethereum just keeps winning
— sassal.eth/acc 🦇🔊 (@sassal0x) April 13, 2023
#7: Tether Undergoes a Reinvention
Tether has grappled with controversies over the opaqueness of its reserves for a considerable time. However, 2023 witnessed a substantial shift toward transparency and collaboration for the stablecoin behemoth.
Paolo Ardoino, the former CTO, assumed the role of Tether’s new CEO. The company made significant investments in Bitcoin mining, including a substantial $500M stake, and reported record levels of cash reserves in Q3 2023.
Tether is actively engaging with regulators nowadays, publicly declaring its cooperation in freezing and blocking OFAC-sanctioned entities, even extending assisting the FBI and Secret Service. Despite persistent predictions of Tether’s downfall, under Ardoino’s leadership, there is a noticeable trend towards a more ethical and sustainable future. This narrative flew somewhat under the radar in 2023, but its significance is remarkable for the crypto industry, given USDT’s status as the stablecoin with the largest market capitalization.
#6: Coinbase Takes a Definitive Position
Coinbase took center stage in the crypto sphere in 2023 amidst regulatory uncertainties in the United States.
The exchange had a tumultuous year, marked by the launch of its own layer-two blockchain called Base. Coinbase engaged in a series of legal battles with the SEC, involving lawsuits and counter-suits.
Despite the challenges, the company’s stock experienced a rally from its lows. ARK Invest sold its Coinbase shares at an 18-month high, potentially transferring them to more robust institutional hands like the South Korean pension fund.
Notably, the most significant narrative might unfold in the upcoming year, as Coinbase is positioned as the proposed custodian for a potential spot Bitcoin ETF. It was far from a quiet year for Coinbase, and 2024 could potentially be even more eventful.
#5: Changpeng Zhao (CZ) Resigns
Changpeng Zhao, the central figure in the crypto sphere since founding Binance, has been instrumental in transforming the exchange from a startup to the world’s leading cryptocurrency exchange in less than five years.
In 2023, a legal ruling compelled CZ to resign from the CEO position as part of an agreement with authorities. In this transitional period, he handed over the CEO responsibilities to Richard Teng as Binance embarked on a new phase.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
Binance is no longer a baby. It is…
— CZ 🔶 BNB (@cz_binance) November 21, 2023
#4: Sam Bankman-Fried (SBF) Faces Legal Consequences
SBF’s narrative took a turn for the worse in 2023, with numerous convoluted subplots. Some of the most intriguing twists include:
- SBF entertaining the idea of paying off Donald Trump not to run for President.
- Caroline Ellison throwing SBF under the bus in her testimony, adding to the complications.
- SBF facing unanimous convictions for fraud and money laundering.
It’s an unfortunate situation, and reportedly, SBF is adapting to his circumstances by engaging in mackerel trading while awaiting his sentencing. How long he will stay behind bars will be determined in 2024, with the potential range spanning from a few decades to a lifetime. It’s a storyline that the crypto community may want to bring to a conclusion sooner rather than later.
#3: AI Sparks Widespread Excitement
2023 could mark the division in crypto timelines: BC (Before ChatGPT) and AC (After ChatGPT).
Since OpenAI introduced ChatGPT early in the year, the AI frenzy has reached its peak. The top AI coins by market capitalization are currently valued at around $20 billion. There’s a scramble to uncover the next hidden gem in AI crypto, with Telegram bots vying to assist traders trade with AI.
Now, picture the impact when retail interest fully reignites. The convergence of AI and crypto appears to be a perfect match, especially when influential figures like Arthur Hayes express bullish sentiments:
"Double Happiness" is my final AI + #crypto essay. It argues we are about to witness the biggest bull market in human history driven by the most amount of money printed in the shortest amount of time, and the coming of AI.
My shitcoin of choice $FILhttps://t.co/fk0C7WNnxY pic.twitter.com/VHpMrxcIyW
— Arthur Hayes (@CryptoHayes) October 5, 2023
Read also: Blockchain and AI
#2: Ordinal Excitement Surrounding Bitcoin
NFTs on Bitcoin?
*Larry David voice* Meh, I don’t think so. And I’m never wrong about this stuff ever.
If you had made that prediction at the beginning of 2023, boy, would you have been mistaken! NFTs on Bitcoin are, to some extent, a reality now. Introducing Ordinals.
Ordinals serve as a method to inscribe satoshis, akin to marking your dollar bills to distinguish them. They triggered a substantial hype in 2023 and likely played a significant role in the subsequent price surge. The trading volume of Ordinals made another leg up after Binance listed them. ORDI, the first memecoin on Ordinals, is now trading at a multi-billion dollar market capitalization.
This narrative might just be in its early stages.
Read also: What are Bitcoin Ordinals?
#1: When Will the Spot Bitcoin ETF Make Its Debut?
The unequivocal standout crypto headline of 2023 was the extraordinary resurgence in Bitcoin prices. The King has reclaimed its throne.
Bitcoin, yet again, outpaced every other major asset, delivering an impressive 155% Year-to-Date (YTD) return. Much of this price resurgence is likely attributable to the excitement surrounding a potential approval for a spot Bitcoin ETF. 2023 might be etched in memory as the year when all the stars aligned for the spot ETF to secure regulatory approval.
When will the ETF materialize?
Imminently! It seems very likely to happen soon.
If the timeline for a spot ETF remains intact, we could kick off 2024 with a bang and witness approvals from the SEC. VanEck already filed $HODL as a ticker, indicating market readiness for potential approval, possibly in January 2024.
Also, explore: Spot ETF vs Futures ETF – What’s The Difference?
Thanks to Bitcoin, we are once again firmly on track.
