In January 2023, ViaBTC Capital and CoinEx jointly released the 2022 Annual Report providing data analysis and insights across nine sectors, including:
- public networks
- organizational policies.
This report also predicts the direction of cryptocurrency in 2023.
According to the report, Affected by factors such as the macro environment and the transition from bullish to bearish, the entire cryptocurrency industry has turned bearish in 2022. After the ground crash in May, most of the cryptocurrency sectors experienced a bearish impact. Below is an overview of each part.
In 2022, the overall performance of bitcoin stayed slowwith significant declines in price and trading volume compared to 2021. At the end of 2022, the price fell below the highest level of the last bull market.
Bitcoin’s price trend throughout the year is obviously affected by the pace of US interest rate increases, but as it continues to advance, its impact on the currency’s price is gradually diminishing. In terms of bitcoin mining, network difficulty remains at an all-time high.
about it, Mining income fell and miners had to retire their old models. The mining industry has been affected by multiple factors, and has a strong impact on crowding out, which has led small mining farm owners to exit the market for various reasons.
At the same time, long-established mining pools and mining farms have managed to maintain a certain level of stability.
Primary statistics for Ethereum It had a downward trend in 2022. In addition to secondary market price and trading volume, on-chain data including TVL, transaction costs, active addresses, and copy volume also declined.
Despite this, the network has made a lot of progress in 2022. On September 15, Ethereum completed its historic transition from PoW to PoS. The merger greatly reduced network power consumption and daily output, thus reducing dumping pressure from secondary markets.
Meanwhile, Level 2 projects such as Arbitrum, Optimism, zkSync, and Starknet have all or partly launched their mainnet. Although its daily transaction volume was much lower than the Ethereum mainnet, the projects outperformed Ethereum in terms of the number of addresses.
Also, the gas fee was usually 1/40th of the fee charged for Ethereum. At the same time, the network also saw a massive increase in gas rates during 2022.
The stablecoin market as a whole has been flat in 2022. Specifically, Over the year, the supply of stablecoins decreased from $157 billion to $148 billion, down 6%.. In this sense, the decline was not material.
Regarding central stablecoins, the USDT It maintained its dominance, however BUSDfrom Binance, is growing rapidly. Algorithmic stablecoins, on the other hand, were hit hard by the collapse of the LUNA device, which shattered confidence in decentralized stablecoins and reduced trading volumes.
As a result, there has been a clear decrease in the number of new decentralized stablecoins.
- public networks
Despite challenging market conditions in 2022, public networks remain a competitive sector. Due to the increase in demand due to congestion on the Ethereum network, the new public network with lower fees maintained an impressive performance before May.
However, as many bad news spread, a string of bankruptcies followed one another. Many public networks were hit hard, and the decline was worse than that of Ethereum. In May, the earth collapsed within a few days, becoming the first known public network to go down.
Moreover, the collapse of the ground was a signal that the market was completely bearish. In November, after the fall of FTX and Alameda Research, Solana and TVL token prices fell again, and projects in their ecosystem were also affected.
Other new networks like Fantom and Avalanche were also struggling. At the same time, several new public networks, including level 2 projects such as Arbitrum and Optimism, and meta-related networks such as Aptos and Sui, are making their debuts in 2022.
In the past year, the NFT sector has plummeted after its initial boom. In April, the NFT market capitalization reached $4.15 billion, its highest level ever; In May, driven by the boom of Otherside, the Metaverse NFT cluster developed by Yuga Labs, the industry’s transaction volume reached a record $3.668 billion.
But soon after, when the NFT market became sluggish, the trading volume dropped. Meanwhile, the price of premium NFTs has plummeted, as has the price of ETH, negatively impacting the market. on the other side, The number of NFT holders continued to grow and reached a record high in December.
DeFi TVL also trended lower in 2022. During the LUNA/UST crash in May, the major coins experienced the most spectacular crash in crypto history., followed by the collapse of TVL. Moreover, throughout the year DeFi also suffered frequent hacks, which raised security concerns.
In terms of innovation, although the first couple of quarters of 2022 saw trends around DeFi 2.0 from time to time, along with declining OHM and (3, 3) meme, DeFi 2.0 almost proved to be a completely wrong narrative, and the market turned its attention to projects DeFi 1.0 infrastructure such as Uniswap, Aave, and MakerDAO.
Despite the bearish conditions, major DeFi projects including AAVE and Compound have managed to maintain stable operations and have attracted many new users to some CeFi projects (such as Celsius and FTX).
In 2022, the blockchain industry continues to explore new possibilities for SocialFi. theThroughout the year, we have seen iconic terms such as Fan Token, Soulbound Token (SBT), Web3 Social and Decentralized Identity (DID) emerge.but PMF (Product-Market Fit) is not specified.
Despite this, SocialFi managed to introduce us to a number of popular projects, including the STEPN life Web3 app with SocialFi Elements, the Galxe credential network, the BNB Chain SPACE ID domain name service, the Lens Protocol social graph, and the Gamified Social Learn protocol. Web3 Hooked.
In addition, the FIFA World Cup Qatar 2022 also helped the Fan Tokens to attract significant interest from the market. As a result, instead of collapsing under the influence of an economic downturn, Fan tokens did a little better in 2022 than they did in 2021.
2022 was also the beginning of a GameFi slump. There has been no major innovation in the P2E blockchain game model. With user growth and trading volume slowing, institutional investors have moved away from the P2E model.
In the first half of the year, the Move-2-Earn model created by STEPN captured the limelight with its innovative dual approach to tokenization and marketing, bringing a new dynamic to GameFi.
last year, Blockchain projects raised the most money in April, with a total blockchain investment of $6.62 billion. However, the market has not responded to other project teams focusing on the augmented reality model.
As the multi-chain ecosystem gains increasing popularity, Ethereum maintains its dominance in the GameFi ecosystem, but the growth rate of projects on the network fails to match the growth rate of BNB Chain and Polygon.
Furthermore, most networks have relied heavily on their core projects and there are still many low-quality GameFi initiatives with a small user base, below-average interactions, and low trading volumes.
- organizational policies
In general, for the digital currency industry, 2022 has been full of ups and downs, but the regulations are moving in the right direction. In the past year, the organizers have made a lot of progress.
- The United States has launched a regulatory framework for cryptocurrencies;
- The EU initially passed the MiCA and TFR laws;
- The United Kingdom and South Korea have made progress in establishing relevant organizations;
- Russia and Hong Kong are encouraged to discuss and implement policies for cryptocurrency mining and virtual asset securities.
The turmoil that befell the cryptocurrency sector in 2022 was partly the result of a sharp drop in funds and partly the result of regulatory loopholes and crackdowns.
last year, The bankruptcy of Terra and FTX, two of the leading cryptocurrency ventures, prompted regulators and law enforcement agencies to further strengthen cryptocurrency oversight and investigations.
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