In January 2023, ViaBTC Capital and CoinEx collectively launched the 2022 Crypto Annual Report to supply information evaluation and insights into 9 sectors, together with Bitcoin, Ethereum, stablecoins, NFT, public chains, DeFi, SocialFi, GameFi and regulatory insurance policies. This report additionally predicts the crypto pattern in 2023.
In accordance with the report, affected by components such because the macro atmosphere and bull-to-bear transition, the entire cryptocurrency business turned bearish in 2022. Particularly, following the Terra meltdown in Might, most cryptocurrency sectors had been hit by the bearish impression. Beneath is the overview of every section.
In 2022, the general efficiency of Bitcoin remained sluggish, with important declines in worth and buying and selling quantity in comparison with 2021. The worth on the finish of 2022 even fell beneath the height of the final bull market. The worth pattern of Bitcoin all year long is clearly influenced by the tempo of US rate of interest hikes, however because the US rate of interest hike coverage continues to advance, its impression on the value of bitcoin is regularly diminished. Concerning BTC mining, the community issue remained at a historic excessive. In the meantime, the mining income plummeted, and miners have needed to shut down their outdated fashions. Affected by a number of components, the mining business witnessed a powerful crowding-out impact, which drove house owners of small mining farms out of the marketplace for varied causes. On the similar time, long-established mining swimming pools and mining farms managed to take care of a sure stage of stability.
The first statistics of Ethereum trended downward in 2022. Along with the secondary market worth and transaction quantity, the on-chain information, together with TVL, transaction price, lively handle and burning quantity additionally took a plunge. Regardless of that, the community did obtain a whole lot of progress in 2022. On September 15, Ethereum accomplished the historic transition from PoW to PoS. The Merge considerably minimize the community’s power consumption and each day output, thereby decreasing the dumping strain from secondary markets. In the meantime, Layer 2 initiatives comparable to Arbitrum, Optimism, zkSync, and Starknet launched their mainnet both in entire or partially. Though their each day transaction quantity was far lower than Ethereum mainnet, the initiatives exceeded Ethereum by way of the variety of addresses. Furthermore, their gasoline charge was usually 1/40 of that charged by Ethereum. On the similar time, the community additionally noticed an exponential enhance in gasoline charges throughout 2022.
The stablecoin market as a complete was steady in 2022. Particularly, all year long, the provision of stablecoins fell from $157 billion to $148 billion, a 6% drop. On this regard, the autumn was not substantial. With respect to centralized stablecoins, USDT maintained its dominance, whereas BUSD is rising quickly on Binance’s again. Against this, algorithmic stablecoins had been hit exhausting by the autumn of LUNA, which shattered the religion in decentralized stablecoins and diminished buying and selling volumes. In consequence, there was a transparent drop within the variety of new decentralized stablecoins.
4. Public chains
Regardless of the tough market circumstances in 2022, public chains remained a aggressive sector. Because of the overflow of demand attributable to the congestion of the Ethereum community, the brand new public chain with low charges maintained a vivid efficiency earlier than Might. Nevertheless, as varied dangerous information brewed and fermented, a collection of bankrupt occurred one after one other. Many public chains had been significantly impacted, and the decline was even worse than that of Ethereum. In Might, Terra collapsed in just a few days, making it the primary well-known public chain to fall. Moreover, the Terra meltdown was additionally a sign that the market turned totally bearish. In November, hit by the autumn of FTX and Alameda Analysis, Solana’s token worth and TVL took one other plunge, and the initiatives inside its ecosystem had been additionally harm. Different new chains comparable to Fantom and Avalanche had been additionally struggling. On the similar time, plenty of new public chains, together with Layer 2 initiatives like Arbitrum and Optimism and Meta-related chains comparable to Aptos and Sui, made their debut in 2022.
Final 12 months, the NFT sector declined after its preliminary increase. In April, the market cap of the NFT reached $4.15 billion, a historic excessive; In Might, pushed by the increase of Otherside, a metaverse NFT assortment developed by Yuga Labs, the buying and selling quantity of the sector hit a document excessive of $3.668 billion. However quickly afterward, because the NFT market turned sluggish, the buying and selling quantity declined. In the meantime, the value of blue-chip NFTs, in addition to the ETH worth, plummeted, which each negatively affected the market. Alternatively, the variety of NFT holders stored rising and reached a historic excessive in December.
DeFi’s TVL additionally trended downward in 2022. Particularly, through the LUNA/UST meltdown in Might, mainstream cash witnessed essentially the most spectacular crash within the historical past of cryptocurrencies, which was adopted by a TVL collapse. Moreover, over the 12 months, DeFi additionally suffered frequent hacks, which raised safety issues for DeFi. By way of innovation, though the primary two quarters of 2022 noticed trending hypes about DeFi 2.0 every now and then, together with the stoop of OHM and the (3, 3) meme, DeFi 2.0 was nearly confirmed to be a very false narrative, and the market shifted its consideration again to DeFi 1.0 infrastructure initiatives comparable to Uniswap, Aave, and MakerDAO. Regardless of the bearish circumstances, mainstream DeFi initiatives together with AAVE and Compound managed to take care of regular operations and attracted many new customers from sure CeFi initiatives (e.g. Celsius and FTX).
In 2022, the blockchain business continued to discover new prospects for SocialFi. Over the 12 months, we noticed the looks of iconic phrases like Fan Token, Soulbound Token (SBT), Web3 Social, and Decentralized Identification (DID), however the PMF (Product- Market Match) was by no means recognized. Regardless of that, the SocialFi nonetheless managed to current us with plenty of star initiatives, together with Web3 life-style app STEPN that includes SocialFi components, credential community Galxe, BNB Chain area title service SPACE ID, social graph Lens Protocol, and Web3 gamified social studying platform Hooked Protocol. Aside from that, the 2022 Qatar World Cup additionally helped Fan Tokens entice intensive market consideration. In consequence, as a substitute of plummeting because of the bearish impression, the Fan Tokens additionally carried out barely higher in 2022 than in 2021.
2022 was additionally the start of the GameFi bear. There was no important innovation in P2E blockchain recreation mannequin. As the expansion of customers and buying and selling volumes dwindled, institutional buyers seemed away from the P2E mannequin. Within the first half of the 12 months, the Transfer-2-Earn mannequin created by STEPN captured the highlight with its progressive twin tokenomics and advertising and marketing method, bringing new dynamics to GameFi. Final 12 months, blockchain initiatives raised the biggest funds in April, with blockchain investments totalling $6.62 billion. Nevertheless, the market didn’t reply to different mission groups specializing in the fact plus token mannequin. Because the multi-chain ecosystem gained rising recognition, Ethereum maintained its dominance within the GameFi ecosystem, however the progress price of initiatives on Ethereum didn’t match that of BNB Chain and Polygon. As well as, most chains relied closely on their prime initiatives, and there have been nonetheless loads of low-quality GameFi initiatives with a small person base, subpar interactions and low buying and selling volumes.
9. Regulatory insurance policies
Usually talking, for the cryptocurrency business, 2022 was stuffed with ups and downs, however laws are headed in the appropriate course. Over the previous 12 months, regulators within the developed world achieved a whole lot of progress. The USA launched a regulatory framework for cryptocurrencies; the European Union initially authorised the MiCA Act and the TFR Act; the UK and South Korea made progress within the institution of the related organizations; Russia and Hong Kong promoted the dialogue and implementation of insurance policies for cryptocurrency mining and digital asset securities. The turbulence that occurred within the cryptocurrency business in 2022 was partially the results of the sharp drop in funds and partially the results of regulatory loopholes and crackdowns. Final 12 months, the chapter of Terra and FTX, two prime cryptocurrency initiatives, prompted nationwide regulators and legislation enforcement companies to additional improve their cryptocurrency oversight and investigations.
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