Here’s How Much The Crypto Market Will Grow By 2023: CoinGecko

Crypto market analysis platform CoinGecko has presented a number of events this year amid optimism and excitement for the industry's growth in 2023, including the recent launch of spot Bitcoin exchange-traded funds (ETFs) and the upcoming Bitcoin halving.

According to the report, the market has seen significant growth in various areas including decentralized finance (DeFi), intangible tokens (NFTs), centralized exchanges (CEXs) and decentralized exchanges (DEXs).

Crypto market cap increased 2.6x.

In the year By 2023, the crypto ecosystem has doubled its total market capitalization, a 108% increase from the $832 billion recorded at the beginning of the year. Much of the growth occurred in Q4 as optimism for the space's adoption of Bitcoin ETFs rose, driving a 55% increase in market value from $1.1 trillion to $1.7 trillion.

CoinGecko attributed Bitcoin (BTC)'s remarkable resurgence to the rising market cap, as the asset surged from $27,000 to $42,000 in Q4 and posted a 155% year-over-year gain.

“BTC had a strong first leg in Q1, rising +72.4%, followed by another spike in Q2. It then pulled back in Q3, falling to -11.5%, before rallying in Q4. Similarly, BTC's average trading volume in Q1 “It came down towards the end and gradually decreased in Q2 and Q3. Then it rose to $18.0 billion in Q4, a +64.3% QoQ gain,” analysts said.

Other crypto assets such as Ether (ETH) and Solana (SOL) have made impressive gains over the past year. The former rose 90.5%, closing the year at $2,294, while the former rose over 900% and ended the year at $103.

CEXs Dominant Crypto Trading Volume

In addition, the crypto market saw a transaction volume of $36.6 trillion by 2023, the most impressive growth in Q4, gaining 53.1% to $10.3 trillion from $6.7 trillion in Q3. Q4 2023 marked the first quarter-on-quarter growth of the year, driven by excitement around ETFs.

Despite regulatory hurdles in the biggest crypto exchange, Binance, and the FTX implosion a year ago, CEXs dominated trading volume.

Meanwhile, NFT trading volume declined, ending the year at less than half of 2022's figure. The volume of the 10 chains reached $11.8 billion, compared to $26.3 billion last year.