Coinbase predicts investors will flock to two crypto assets in 2023 as flight to quality continues

[ad_1]

Crypto exchange Coinbase singles out two digital assets that will become favorites for quality-seeking investors.

The US crypto exchange indicates in its 2023 Crypto Market Outlook report that one of the key themes next year will be institutional investors seeking quality in a deteriorating macroeconomic environment.

According to Coinbase, Bitcoin (BTC) and Ethereum (ETH) will be favored by investors based on the fact that they have a proven track record, among other things.

“Within crypto, we expect digital asset selection to shift towards higher quality names like bitcoin and ether based on factors such as sustainable tokenomics, maturity of respective ecosystems and relative market liquidity. .

Additionally, many traditional risk assets still look rich, and the investment thesis for cryptocurrencies like BTC and ETH have not fundamentally changed in our view, which could potentially open up key value opportunities.

The US digital asset exchange says cryptocurrency prices will likely continue to correlate with other risky assets.

“We assign a low likelihood of crypto performance decoupling from traditional risk assets in the early months of 2023, especially without a differentiated catalyst.”

Regarding competition among smart contract-enabled blockchains, Coinbase says Ethereum’s successful transition to a proof-of-stake consensus mechanism has strengthened its ability to continue to be a leader among layer 1 blockchains.

“Ethereum’s successful merger of its consensus and runtime layers in September 2022 also strengthened the case for ambitious future upgrades, despite the core protocol’s long-term ossification trend.

In our view, this supports the fundamental narrative of Ethereum as a leader in a multi-chain world, especially since almost all networks are vying for the same pool of users and capital.

Don’t miss a beat Subscribe to receive crypto email alerts straight to your inbox Check price action Follow us on Twitter, Facebook and Telegram Surf The Daily Hodl Mix Check the latest headlines Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.

Feature image: Shutterstock/Vadim Sadovski

[ad_2]