In January 2023, the BTC Capital And this coinx Jointly launched 2022 Annual Report to supply knowledge evaluation and insights throughout 9 industries, together with:
- secure cash
- public community
- regulatory insurance policies.
The report additionally predicts the pattern of cryptocurrencies in 2023.
in response to the report, Influenced by elements such because the macro atmosphere and the transition from bullish to bearish, the complete cryptocurrency trade has turned bearish on 2022. After the Earth crash in May, most of the crypto sector was hit by the results of the recession. Below is an outline of every part.
In 2022, the general efficiency of Bitcoin slowed downWith a big drop in worth and buying and selling quantity in comparison with 2021. The worth additionally declined from the earlier bull market highs on the finish of 2022.
Bitcoin worth motion all year long is clearly affected by the tempo of US rate of interest hikes, however their impact on the coin’s worth steadily diminishes as they progress. With regard to BTC mining, the community issue stays at an all-time excessive.
About that, Mining earnings declined and miners needed to retire their older fashions. Influenced by many elements, the mining trade skilled a powerful affect crowding outWhich pressured small mining farm homeowners out of the market because of varied causes.
At the identical time, long-established mining swimming pools and mining farms have managed to take care of a sure degree of stability.
major knowledge of Ethereum There was a downward pattern in 2022, In addition to secondary market worth and buying and selling quantity, on-chain knowledge together with TVL, transaction price, lively addresses, and burn quantity have additionally dropped.
Despite this, the community has made so much of progress in 2022. September fifteenth, Ethereum completes historic transition from PoW to PoS, The merger considerably lowered grid vitality consumption and each day manufacturing, thereby lowering dumping strain from secondary markets.
Meanwhile, Tier 2 tasks equivalent to Mediation, optimism, zksync And Starknet has absolutely or partially launched its mainnet. Although its each day transaction quantity was a lot decrease than that of the Ethereum mainnet, the challenge exceeded Ethereum in phrases of the quantity of addresses.
Furthermore, its gasoline charge was 1/40 of what is usually charged for Ethereum. At the identical time, the community additionally sees a steep improve in gasoline charges by means of 2022.
The stablecoin market was flat in 2022 total. particularly, For the yr, stablecoin provide decreased from $157 billion to $148 billion, down 6%, In that sense, this decline was not a lot.
With regard to centralized stablecoins, usdt whereas sustaining its dominance EnoughFrom Binance, rising quickly. On the opposite hand, algorithmic stablecoins had been hit laborious by the LUNA crash, which shattered belief in decentralized stablecoins and lowered buying and selling volumes.
As a outcome, there was a marked decline in the quantity of new decentralized stablecoins.
Despite robust market situations in 2022, public networks stay a aggressive sector. The new low-fee public community maintained a powerful efficiency forward of May, due to a surge in demand attributable to congestion on the Ethereum community.
However, a collection of bankruptcies adopted as many dangerous information got here to the fore. Many public networks had been closely affected, and the fallout was worse than Ethereum. In May, Earth collapsed inside days, changing into the primary identified public grid to go down.
Furthermore, the collapse of the earth was an indication that the market was in full bearish mode. In November, the worth of Solana Token and its TVL fell once more as FTX and Alameda Research dropped, affecting tasks inside its ecosystem as properly.
Other new networks equivalent to Phantom and Avalanche had been additionally struggling. At the identical time, a number of new public networks, together with Tier 2 tasks equivalent to Arbitrum and Optimism and meta-related networks equivalent to Aptos and Sui, are slated to debut in 2022.
Last yr, the NFT sector took a downturn after its preliminary growth. In April, the market capitalization of NFTs reached an all-time excessive of $4.15 billion, In May, trade transaction quantity reached a document $3.668 billion, pushed by the growth of The Otherside, a metaverse NFT assortment developed by Yuga Labs.
But quickly after, when the NFT market slowed down, buying and selling volumes got here down. Meanwhile, the worth of blue-chip NFTs fell in addition to that of ETH, which negatively affected the market. On the opposite hand, The quantity of NFT holders continues to develop and reaches an all-time excessive in December,
DeFi TVL can also be trending down in 2022. During the LUNA/UST meltdown in May, mainstream currencies noticed essentially the most spectacular crashes in crypto historical past., after the collapse of TVL. Furthermore, all year long, DeFi has additionally confronted repeated hacks, elevating safety issues.
In phrases of innovation, though the primary two quarters of 2022 noticed periodic developments relating to DeFi 2.0, in addition to the OHM drop and (3, 3) Mem, DeFi 2.0 turned out to be virtually totally a false story, and The market has turned its consideration to DeFi 1.0 infrastructure tasks equivalent to Uniswap, Aave and MakerDAO.
Despite the bearish situations, main DeFi tasks together with AAVE and Compound have managed to take care of secure operations and some CEFI tasks (equivalent to Celsius and FTX) have attracted many new customers.
In 2022, the blockchain trade continues to discover new potentialities for Socialify.Throughout the yr, we noticed the rise of iconic phrases equivalent to Fan Token, Soulbound Token (SBT), Web3 Social and Decentralized Identity (DID).But the PMF (Product-Market Fit) was by no means recognized.
Despite this, Socialfy nonetheless managed to introduce us to a quantity of well-known tasks, together with the STEPN Lifestyle Web3 app with Socialfy components, the Galaxy Credential Network, the BNB Chain Space ID area service, the Lens Protocol Social Graph, and Gamified Social. Learning Web3 Hooked Protocol.
In addition, the 2022 Qatar World Cup additionally helped Fan Token garner so much of consideration from the market. As a outcome, as a substitute of falling underneath the affect of recession, Fan Token additionally carried out barely higher in 2022 than in 2021,
The yr 2022 was additionally the start of the GameFi slowdown. There has been no important innovation in the P2E blockchain recreation mannequin. As consumer development and buying and selling volumes have slowed, institutional buyers have seemed away from the P2E mannequin.
In the primary half of the yr, the Move-2-Earn mannequin created by STEPN captured the highlight with its modern twin strategy to tokennomics and advertising and marketing, bringing a brand new dynamic to GameFi.
Last yr, Blockchain tasks raised essentially the most funding in April, with blockchain investments totaling $6.62 billion. However, the market has not responded to different challenge groups specializing in a extra tokenized actuality mannequin.
Ethereum continues to dominate the GameFi ecosystem because the multi-chain ecosystem grows in recognition, however the development charge of tasks on the community has not been in a position to match that of the BNB chain and Polygon.
Furthermore, most networks had been closely depending on their core tasks and nonetheless had only a few high quality GameFi initiatives, with a small consumer base, below-average interactions, and low buying and selling volumes.
regulatory insurance policies
Overall, 2022 has been full of ups and downs for the cryptocurrency trade, however rules are shifting in the best course. Over the previous yr, regulators have made so much of progress.
- United States launches a regulatory framework for cryptocurrencies;
- The European Union initially handed the MiCA Act and the TFR Act;
- The United Kingdom and South Korea made progress in organising related organizations;
- Russia and Hong Kong promote the dialogue and implementation of insurance policies for cryptocurrency mining and digital asset securities.
The turmoil that rocked the crypto house in 2022 was partly the outcome of quickly collapsing wealth and partly the outcome of regulatory loopholes and rifts.
Last yr, The chapter of two main cryptocurrency tasks Terra and FTX has prompted regulators and legislation enforcement businesses to additional improve crypto oversight and investigation.
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