Which tokens will perform better in 2023? America’s second largest bank responds

Bank of America experts believe that the year 2023 can be associated with a change in the digital currency market, whereby a certain category of digital currencies will perform better than other tokens.

To Report CoinDesk Cryptocurrencies started 2023 better than expected and the total market value is now back above $1 trillion with a growth of 36%.

Bank of America experts, the second largest bank in the United States, recently said in a report:

We expect that 2023 will be the year when the prices of digital currencies diverge from each other. A year in which tokens that have a specific function or share their holders in the profits of their project will outperform memecoins and governance tokens.

Bank of America considers currencies tied to blockchains capable of hosting smart contracts, networks on which developers can run applications, as potential growth assets, albeit with the same risks as investing in high-potential stocks. . In this report, it is said that these kinds of digital currencies, as well as tokens that have a low market value but a relatively high volume of transactions, have led the growth of digital currencies this year.

Bank of America strategists remain cautious in commenting on market growth and believe that although the strengthening of macroeconomic data has postponed the recession, the current conditions indicate the possibility of a recovery of inflation and a continuation of the increase in bank interest rates. .

Alkesh Shah and Andrew Moss wrote in this report that January’s rise in risky assets was partly due to traders who were short positions and then forced to sell when unexpected price growth occurred. were bought, and the tendency of the price to return to its long-term average has influenced this upward movement. With this in mind, high bank interest rates may encourage companies to try to find new ways to grow and profit, and ultimately lead to greater adoption of digital currencies.