3 months ago 2 min read

What Should the Market Expect This Year After Ripple's "Win" in the XRP Lawsuit Against SEC?

  • Analysts predict how the industry will evolve in 2023 based on the existing situation and anticipated historical events.
  • Stablecoin, DeFi rules, the SEC v. Ripple lawsuit, and the debunking of the FTX tale, among others, are crucial in shifting the pendulum.
  • This year's network enhancements on the Solana, Ethereum, and other blockchains will also serve as a benchmark for web3 development.

As analysts reflect on major elements that may influence the expansion of web3 over the upcoming 12 months, the new year has brought with it fresh market guesses and insights.

The market's bearish tendency is the main topic analysts have focused on. Is the end near? The previous year was chaotic, with numerous high-profile assets losing up to 60% of their value and no clear path to recovery. The market leader, Bitcoin, fell more than 55% last year and is currently trading around $17,000.

The good news is that inflation is declining and that stocks and other assets will recover; therefore, the bear market may soon be finished.

The SEC v. Ripple (XRP) case has been pending for the past two years, and if successful, it would set a precedent for both the SEC and Ripple. For the SEC, a ruling identifying XRP as a security would have a significant impact on how the nation regulates digital assets.

Some analysts think that if authorities target centralized exchanges like Binance US, Coinbase, and Kraken, the case would have a wider impact. According to Lewis Cohen, a lawyer specializing in web3 and digital assets, the SEC intends to fully use its victories against XRP.

He said, "Most US token markets would be prohibited from allowing customers to purchase and sell "crypto securities" unless they registered as exchanges or obtained an exemption if they got their way.

If Ripple prevails, regulators won't make a harsh effort to classify digital assets as securities. In particular, it will signal a watershed moment for the XRP Army, which feels that the SEC is preventing the widespread adoption of its favorite asset.

More Ethereum improvements

Vitalik Buterin reaffirmed his commitment to continue driving the evolution of web3 following Ethereum's Merge last year, which changed the network to a proof-of-stake paradigm and reduced its energy usage by 99%. In Q1 2023, the blockchain will undergo a Shanghai update to allow Ethereum stakeholder withdrawal (ETH).

Users have staked over $20 billion worth of ETH, including freshly created ETH, since staking on the blockchain began, and will be eligible for withdrawal in March. As its nearest rival, Solana, struggles with project migration and technical difficulties, Ethereum is also well-positioned to maintain its position as the leader in NFTs and other projects.

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