Hey 2023, how you doinnn?😉

Good Morning, Switchers 🌞

👋Welcome to Switch Daily.

The day has finally arrived, we’re now past the eventful 2022 and into the first week of 2023. And oh, Happy 2023 to you! You’re gonna rock it.

So, what’s your new year's resolution? This is the most common question we get asked at any new year party. You probably did, too 😅. And if you were anything like us, our 2022 resolutions still lie unresolved, so we immediately say, ‘Oh, this year I’m gonna sort my financial goals’.

Did we mean it? Well, ya know, maybe. But if you have a similar resolution and want to follow through on it, then we’re here to get you through. Read Switch Daily every day to get all your money insights. We won’t be tough like your gym trainer, we promise. 🙈 Let’s have a fun 2023, shall we?

BTW, if you like reading this newsletter, give us a shout-out on Twitter and get your friends to subscribe. It will mean a great deal to us!

Here’s what we’ve got for you today:

• Market pulse

• 2023, how’s it doing?

• Hot news

• Meme of the day

Market pulse 📈

The market is off to a good start 😎

The crypto market got off to a great start in the new year. Most of the top cryptos by market cap traded in the green. However, XRP and BNB bucked the trend and turned the bullish session into a mixed one.

Among the gainers, ADA led the way with a 1.63% gain, while BTC, DOG, ETH, and MATIC also eked out marginal gains. The Fear and Greed Index rose from 26/100 to 27/100.

Crypto in 2023: what theme are you wearing?⚡️

Quick question: how many of you would lose it if you came across another year-end wrap? Well, I would. 2022 is done, and we have had enough overviews and concluding pieces. It’s time to look ahead, deep into 2023.

It’s the first working day of 2023, and we stayed up all night yesterday (yes, we didn’t get to party) to identify the crypto themes that could play out really well in 2023. Here is what we found:

Quality takes centre stage

Remember the piece we did on spam tokens? Well, 2023 might just be the year when people start focusing on crypto and projects with underlying value.

Reasons include Market liquidity, ecosystem maturity, and sustainable tokenomics!

Do not believe us? Here is a stat that might help.

Last reported, long-term BTC holders make up 85% of the ecosystem, despite the bottoming fear that lingers.

And while the quality-only trend might just push through, it might just make way for these sub-trends:

Strengthening of the Ethereum narrative with the Shanghai upgrade taking centerstage.

But that’s not it! Vitalik’s famed roadmap has just hit another milestone, pushing Ethereum one-step closer to vision 2.0.

DeFi’nite growth in the spotlight

Here is a quick chart showing the monthly DEX volume over the past 24 months. Can you notice the pattern here:

DEX-specific DeFi volumes picked up in Jan 2021, only to peak around November 2021. A steady drop followed, with the crypto market hitting all-time lows in 2022. Apparently, the October 2022 levels are in line with the early 2021 volumes. And we know how crypto history has a habit of repeating itself (bull and bear cycles).

2023 might see a similar January 2021 to November 2021 trend! At least, we can hope so!

Focus on liquidity

Most altcoins took a beating in 2022, especially with the likes of the LUNA crash and FTX contagion pushing the crypto market back a few aeons. Kaiko — a reputed data provider for digital assets — reported on 14 November 2022 that the market depth ( overall liquidity) has dipped across exchanges. And this would be the area to fix in 2023, making the focus shift to liquidity over anything else.

Here is a chart that shows how bullish the sectoral flow is in regard to Liquid staking. Collectibles (NFTs) aren’t far behind, are they?

The next “NFT Adoption” wave

NFT popularity went through the roof in 2021. And despite the significant dip in 2022, we expect 2023 to be a better year in terms of utility. Or maybe NFT just likes odd years, chuckles!😅

But what things different could surface when NFTs are concerned? We have the answer:

1. Companies pairing NFTs with physical offerings (Nike and Tiffany & Co. are already on it).

2. Content aggregation platforms syncing NFTs with identities (Reddit is already on it).

3. Services like ENS (Ethereum Name Service) continue their uptrend, making digital identities even more popular.

It’s interesting to see how ENS registrations kept piling up despite the bearish market spreading far and wide. While these trends will be in focus, do not expect them to surface in silos. Instead, we expect the market to make a better sense of crypto regulations while steadily fulfilling these mentioned prophecies. It’s the hope that will get us there, not immediately, but definitely.

What else is new?

🥷OG BTC developer reports stolen crypto.

Luke Dashjr, one of Bitcoin's early developers, announced on Twitter today that his PGP key had been compromised and his bitcoins had been stolen. The amount of bitcoin lost is still unknown, but a significant portion appears to have been transferred.

🐶ETH whales continue to accumulate SHIB

Shiba Inu has joined the list of the top ten most traded tokens among the top 100 ETH whales, according to Whalestats. This demonstrates that there is still a market for SHIB, particularly at its current support level.

🤚Vitalik shows support for the SOL community

In a Dec. 30 tweet, Ethereum founder Vitalik Buterin expressed sympathy for competitor Solana. He said that "smart people" tell him that Solana has "an earnest, smart developer community" and suggested that the opportunists who were involved with the project in the past have been "washed out”.

Meme of the day!

Thank You,

See you later, folks. 👋

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