After the two major peaks of 2023, the cryptocurrency market experienced a major crisis that affected almost the entire market in 2022. While monetary or financial risks, particularly linked to the war in Ukraine, inflation, and rising interest rates around the world have persisted throughout the last year, the cryptocurrency market has declined sharply. The crypto industry would have lost nearly 3.9 billion US dollars in 2022.
While cryptocurrencies generally seem to be recovering in 2023, it is important to know which crypto to buy to make the most of your crypto investments. Thus, in this article, we offer you an overview of the best cryptocurrencies of 2023. It is also important for the crypto market to continue to rebuild a solid foundation that will ensure the expansion or rebound of cryptocurrencies after the numerous bankruptcies and the risks linked to the structural instability of several projects, as well as the lack of liquidity which calls for caution. Wondering which crypto to buy? Discover our Top 8 of the best crypto 2023.
1. Bitcoin is the reference cryptocurrency to buy
Bitcoin (BTC), created by Satoshi Nakamoto, is not exactly a new cryptocurrency, but it is often one of the answers to “which crypto to buy” questions that investors ask. This is the first to have been created. BTC, as the main cryptocurrency, gives a good overview of the trends of all other cryptos. 2020 was a record year for Bitcoin. Its capitalization was multiplied by more than 2.5 over the year! In 2021, Bitcoin grew more slowly but still managed to gain almost 50%. The capitalization of Bitcoin has also exceeded that of companies like LVMH or Bank of America. But such performances generally herald such brutal falls, since, for example, it lost almost 60% in 2022.
The Bitcoin rally was mainly explained by liquidity injections, the resulting fall in financial stress, but also by the desire to institutionalize cryptocurrencies. We have thus noticed the presence of strong hesitations on Bitcoin in 2021 with more recurring bearish movements. The year 2022 confirmed the slowdown in bullish performance with an acceleration in the fall of BTC, precipitated by the general market crisis.
Bitcoin started 2023 above $16,550 and is currently trading around $25,720. While it peaked above $31,470 in July 2023, Bitcoin has gained more than 54% since January 2023 despite the decline since that peak. The trajectory of inflation and monetary policies has impacted the evolution of Bitcoin in 2023, which has notably favored the purchase of cryptocurrencies as an investment in riskier assets.
We must also not forget the crisis in the banking and financial sector which influenced the value of the token. Technological developments around Bitcoin also impact the performance of the network and should attract even more investors. Since August 15, 2023, for example, Jacobi Asset Management has listed Europe’s first spot Bitcoin ETF on Euronext Amsterdam, the Jacobi FT Wilshire Bitcoin ETF. MicroStrategy continued to acquire new Bitcoin this summer.
2. Ethereum challenger to Bitcoin and the most used crypto
TheEthereum (ETH) is the second cryptocurrency in terms of valuation. It is therefore not a new cryptocurrency either but its preponderance makes it an essential crypto again in 2023. Should we buy cryptocurrency in this 2023 school year?
In 2021, ETH significantly outperformed Bitcoin (+270%), but the fall in 2022 was even more significant since the token lost almost 70% last year. Since the start of 2023, ETH has gained over 35% and gone from $1,200 to $1,624.
Despite poor performance last year, Ethereum managed to implement “The Merge” update in mid-September to move from proof of work to proof of stake, which turned out to be one of the few positive developments in the market in 2022. The merger reduced the amount of ETH tokens available in circulation and made the Ethereum network 99.95% more energy efficient.
This is a big step forward because ETH is often considered the most used virtual currency. This is explained by the presence of numerous tokens which are based on the use of Ethereum. The recent boom in the DeFi sector should therefore support the crypto-asset, especially if the banking crisis intensifies.
We can associate ETH with a stock market index to the extent that the companies that make it up would be players in the crypto industry. This mechanism also explains the panic attack that affected ETH in 2022. Certain tokens linked to Ethereum, like StETH, are one of the main explanations for the collapse of platforms like Celsius.
This year 2023 saw a major new update for the Ethereum network. Called Shella, the latest enhancement to the Ethereum blockchain since its Merge update will allow investors to exchange a derivative of deposited Ether tokens, such as OP, ARB, and other ERC-20 tokens, for interest accrued on the blockchain network over the last three years.
3. Binance Coin the crypto that is entering the big leagues
Binance Coin, issued by the famous platform of the same name (Binance), now belongs to the very exclusive club of the 5 largest cryptocurrencies in the world. Binance is one of the giants that are benefiting from the democratization of cryptocurrencies in individual savings.
Binance Coin (BNB) went from nearly €5 billion in capitalization at the start of 2021 to more than €75 billion at the end of 2021, before falling towards €42 billion in mid-2022 and around €35.05 billion at the start of September 2023, which shows the scale of capital flows in 2021 and quite clearly suggests the break between the increase in 2017 and that of 2020 and 2021: investment is no longer solely speculative.
The token has lost more than 12% since January. While many promising projects on the BNB Chain blockchain are expected to support the Binance ecosystem and the value of the token, is now the time to buy the cryptocurrency?
Although Binance Coin is one of the few exchanges to continue some hiring and show confidence in the future, mainly due to its historical and dominant position, it remains exposed to structural risks and the supervision of the American watchdog, the SEC.
At the end of August 2023, a new secret court filing filed concerning Binance, already accused of reprehensible practices in the United States, raises questions about possible unfavorable developments for Binance. The SEC submitted a sealed motion, allowing it to file sensitive or confidential information without disclosing its contents publicly.
