2023 Crypto Market Review: A New Journey from Bear to Bull (Part 3)

27 December 21:47

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![](https://gimg2.gateimg.com/image/article/1692587449analysis.jpeg)
## [TL；DR]: 
In 2023, the global crypto market is becoming increasingly regulated. Despite a series of enforcement actions against cryptocurrency, Hong Kong is actively embracing the crypto industry, and the overall trend is that the West is not bright and the East is bright.

<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> saw a strong rise of 170% throughout the year, continuing to maintain its leading position in the industry. The spillover effect of funds also activated the entire crypto market in the fourth quarter, with AI, DePIN, RWA, and other sectors performing outstandingly.

In 2023, the crypto market experienced a turbulent year, but Gate.io has always maintained a stable development trend. The success of Gate.io proves that in a turbulent market environment, adhering to credibility, innovation, and social responsibility is the key to the success of a crypto trading platform.

(Follow the preceding paragraph)

## L1's Image: Adventurer, Avenger, Innovator
The rebound of the crypto market in Q1 2023 did not lead to an increase in L1 public chain usage. Although the market value of some distinctive L1 has increased by an average of 83% month on month, the usage rate has decreased by about 2.5%. This situation finally improved by Q4.

**<a href="/price/aptos-apt" target="_blank" class="blog_inner_link">Aptos</a> and Sui**
In the first half of the year, Aptos and Sui’s public chains received much attention, both of which adopted innovative Move language and used the technical framework of the Diem and Novi projects that Facebook had abandoned. They were also built based on the widely accepted Byzantine Fault Tolerance (BFT) mechanism in the market.

The emerging blockchain ecosystem based on the MOVE programming language has brought new vitality to the L1 market this year. Aptos and Sui are leveraging their advantages of efficient parallel processing and low cost to create new competitiveness around continuous creation and network scale.
 ![](https://gimg2.gateimg.com/image/article/1703684391img_v3_026h_1dc184bc-58c6-400a-bff9-6b6a920f5cix.jpg)
Source: Artemis Terminal
 
**<a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>**
After enduring a painful decline in the first half of the year, a group of L1 blockchains finally experienced a retaliatory rise in the second half, with Solana being the most prominent.

Thanks to its strategy of "giving priority to ecosystem instead of technology," Solana has optimized its technical solutions this year and attracted numerous developers and users with a large number of incentive measures. This year, Solana has emerged from the quagmire of FTX with a dazzling performance of nearly 10 times increase, and the coin price has set a record high in 16 months.

**<a href="/price/avalanche-avax" target="_blank" class="blog_inner_link">Avalanche</a>**
Avalanche, which focuses on enterprise collaboration, completed the iOS release of the Core product suite this year, supporting multi-chain seed phrases and creating based on Gmail wallets. Stack on Core web has become the preferred staking tool, and has implemented measures such as simplifying the protection of Avalanche's network through Core phone staking. It has become the only network in this year's In_script_ion fever that has not experienced lag or downtime with Solana.

**Cosmos**
Furthermore, it must be said that the previously lukewarm Cosmos ecosystem has also made significant progress. This year, the modular blockchain network Celestia built on the Cosmos SDK, derivative trading platform <a href="/price/dydx-dydx" target="_blank" class="blog_inner_link">dYdX</a> v4, game public chain Objective Protocol, and smart contract infrastructure <a href="/price/trueusd-tusd" target="_blank" class="blog_inner_link">TrueUSD price</a> based on the Cosmos platform have been launched with great popularity, once again bringing the Cosmos ecosystem into the market view. I believe that with the improvement of IBC's scalability and interoperability next year, Cosmos will further enhance the capacity of its ecosystem, thereby achieving seamless interaction between blockchain, applications, and smart contracts. The value capture capability of <a href="/price/cosmos-hub-atom" target="_blank" class="blog_inner_link">Cosmos Hub</a> will also make substantial progress.

**Near**
The roadmap for the shard public chain Near, which focuses on wireless scalability, mainly includes the release of the second sharding protocol Phase2 in 2023 and the delivery of the third sharding Phase3 in 2024. Currently, there is still a long way to go for its proposed goal of transitioning from layer 1 blockchain to a blockchain operating system.

**<a href="/price/fantom-ftm" target="_blank" class="blog_inner_link">Fantom</a>**
The Fantom ecosystem mainly relies on AC's personal charm and ready-made products to attract traffic. After AC's return, it launched the Dapp Gas monetization plan to reduce FTM destruction rates and made substantial progress in virtual machines (FVMs).

**<a href="/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a>**
The <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> side chain Polygon is vigorously promoting the Polygon 2.0 plan. Polygon 2.0 is actually an upgrade plan announced by Polygon in June this year, which includes four aspects: Polygon PoS upgrade, technology architecture upgrade, token economy update, and governance mechanism upgrade. It aims to become a unified network composed of L2 chains supported by ZK technology. Thanks to its rich technical and practical reserves, there are currently 1278 applications established on Polygon, second only to Ethereum, and the adoption of Polygon zkEVM ranks seventh in the ZK scheme.

**<a href="/price/neo-neo" target="_blank" class="blog_inner_link">NEO</a>**
Although the surge of public chain NEO (GAS) has been hyped by South Korea, its fundamentals themselves are not without merit. Since the NEO team shifted from a single governance mechanism to a strong incentive model, the production and distribution of GAS tokens have become more reasonable; According to its founder Da Hongfei, NEO is also creating a side chain that can resist Miner Extractable Value (MEV) attacks and is compatible with Ethereum Virtual Machines (EVMs). The NEO side chain will be released by the end of 2023.
![](https://gimg2.gateimg.com/image/article/1703684586img_v3_026h_b81a4e78-da70-4a1a-ad9f-1bb27f20cbix.jpg)
Source: DeFilLama
 
Another interesting trend of L1 this year is that many vertical public chains targeting specific fields have begun to be launched, gradually building competitive barriers. For example, Solana launched a revolutionary solution of state compression in the second quarter of this year, which can reduce NFT storage costs by thousands of times. For example, Polymeresh, which specializes in serving the RWA track of compliant assets, has taken a place in their respective fields of expertise.

## Gate.io is Steadily Moving Forward, Leading the Industry Trend
Gate.io was founded in 2013. In the past 10 years, despite the ups and downs of the crypto market, Gate.io has not only survived but also flourished, becoming one of the world's leading crypto trading platforms.

Gate.io has further improved its compliance process this year, enriched a range of crypto products and services, and practiced a sense of social responsibility.

### 1. Compliance and transparency, security and trustworthiness
Gate.io focuses on compliance and has never been affected by regulation this year. It strictly complies with the laws and regulations of various jurisdictions and provides users with a safe and reliable trading environment.
 ![](https://gimg2.gateimg.com/image/article/1703684674img_v3_026h_cd3d3f9b-236a-4b26-a7f1-be0a54b7dfix.jpg)
Source: Gate.io
 
Gate.io adopts various innovative solutions such as Merkle tree, third-party auditing, and hiring an independent virtual currency accounting and auditing company to ensure the security of user funds. As of the writing date, Gate.io has publicly disclosed assets exceeding $2.3B, reflecting Gate.io's commitment to transparency and compliance.

### 2. Innovative services, leading trends
Gate.io is a pioneer in the crypto industry, always at the forefront of the market, constantly launching new products and services.

We launched disruptive products such as Web3 wallets and unified accounts in 2023, and launched the Gate Mall, injecting new impetus into the prosperous development of the Web3 ecosystem.

In addition, we have also taken the lead in launching the BRC20 In_script_ion Token online, contributing to this year's In_script_ion craze.

Currently, Gate.io provides trading services for nearly 2000 tokens and over 3000 trading pairs.
 ![](https://gimg2.gateimg.com/image/article/1703684745img_v3_026h_800ac405-7432-4945-b110-4afaa68819ix.jpg)
Source: Gate.io
 
### 3. Build an ecosystem together and participate in charity
Gate.io is a responsible enterprise committed to creating value for society and users.

Gate.io has increased its support for related projects such as DeFi, GameFi, NFT, and BRC20 this year, and has invested in multiple innovative crypto projects such as Dmail, Port3, YGG Japan, Tonstarter, Kana Labs, Flashwire, and Kryptos.

Gate.io also actively participates in charitable causes and provides support to global communities. By the end of this year, Gate Charity, a global non-profit charity under Gate Group, has donated more than $400K, covering nearly 160K person times in more than 130 countries/regions, including Indonesia, Malaysia, Vietnam, Türkiye, Brazil, Somalia, etc.

Our community-building strategy upholds openness, regularly interacts with users, understands their needs, and provides valuable information and services.
 
## Conclusion
Overall, 2023 is a year of recovery for the crypto market from a bear to a bull, and 2024 is expected to further prosper and improve.

In the past year, the regulation of cryptocurrencies by governments around the world has become increasingly clear, providing legal protection for the development of the crypto market; The global economic recovery and geopolitical deterioration are parallel, and investors' demand for emerging assets of Bitcoin is gradually increasing; This year, the construction of the crypto ecosystem has not been interrupted, and the fundamentals of old tracks such as DeFi, NFT, DAO, and Social are gradually improving. New fields such as L2, AI, RWA, and DePIN are constantly developing and growing, providing investors and developers with more opportunities and choices.

With the Bitcoin halving next year, positive progress in spot Bitcoin ETFs, and interest rate cuts by the Federal Reserve, the crypto market in 2024 will be full of opportunities and challenges will follow closely.

It can be foreseen that the impact of the aftermath of the bear market will gradually disappear, positive macro narratives and market sentiment will continue, and the application of cryptocurrency in the retail industry will also become increasingly popular. The crypto market will also transition from Bitcoin Season to a flourishing situation with a variety of options, including in_script_ions, L2, RWA, DePIN, GameFi, and others, which are expected to become important topics leading the industry trend.

Investors and participants need to stay informed about regulatory policies, market sentiment, and innovative applications in order to make informed decisions in this complex market. In this journey of the vast sea of stars, Gate.io will continue to focus on user centricity and dedication to industry progress, accompanying over 14 million users worldwide to embrace a more prosperous crypto market.

Further review of the crypto market in 2023:

[2023 Crypto Market Review: A New Journey from Bear to Bull (Part 1)](https://www.gate.io/blog_detail/3631/2023-crypto-market-review-a-new-journey-from-bear-to-bull-part-1 "2023 Crypto Market Review: A New Journey from Bear to Bull (Part 1)")

[2023 Crypto Market Review: A New Journey from Bear to Bull (Part 2)](https://www.gate.io/blog_detail/3632/2023-crypto-market-review-a-new-journey-from-bear-to-bull-part-2 "2023 Crypto Market Review: A New Journey from Bear to Bull (Part 2)")

<div class="blog-details-info">
<div>Author:**Carl Y.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

BTC/USDT -1.56%

ETH/USDT -0.88%

GT/USDT -0.69%

TL；DR

L1_s Image: Adventurer, Avenger, Innovator

Gate.io is Steadily Moving Forward, Leading the Industry Trend

Conclusion

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