The year 2022 has been quite challenging and tiring in many respects. Speaking of markets on the one hand and regulators on the other, it is possible to say that the industry has gone through a very tough maturation period. After all these events, the prominent developments of the crypto money industry in 2022, CoinGecko brought together the events in the 2022 Annual Crypto Industry Report. As CoinGecko’s partner in Turkey, we will be sharing these details with you.
Krypton’s 2022 report card
2022 has been a bumpy year for the crypto industry. CoinGecko prepared a report by bringing together the developments in the crypto industry in general and the movements in the markets in its 2022 Annual Crypto Industry Report.
Although 2022 is described as the year of disasters, it did not start the year like this. Especially in the first quarter, it was a quarter in which both DeFi, NFT and projects ran from record to record day by day. However, these rises were suddenly reversed with the collapse of Terra after the market fluctuation. It took another fatal blow before the end of the year, with the collapse of FTX and Alameda Research at the end of the year.
With the collapse of FTX, many companies were badly affected. In the third quarter, too, total market capitalization increased at 6.5 percent quarter-on-quarter, or about $1.2 trillion from the end of the second quarter. However, the rankings also changed considerably due to volume and price changes in the markets.
Overall, the report reveals that the cryptocurrency market has been trading sideways in the $1 trillion range and below, after Q2 of 2022. However, amid tough macroeconomic conditions and a series of bankruptcies and collapses in the cryptocurrency market, the total market cap closed 2022 at $829 billion, which is 64 percent lower than at the beginning of the year.
Dominance increased but stablecoins lost $27.3 billion in volume
Although confidence in stablecoins waned after the USTC crisis in the middle of the year, this situation quickly recovered and lost its effect as stablecoins such as USDT, USDC and BUSD increased their market dominance. Bitcoin’s dominance remained relatively stable in 2022.
The market cap of stablecoins decreased by 17% in 2022 to $27.3 billion. The biggest drop, predictably, occurred during the collapse of the UST. Stablecoins have fought well with the depeg FUDs that have since come out.
At the beginning of these ups and downs, of course, comes the collapse of FTX. FTX has impressed more than 1 million depositors, creditors and investors. The domino effect created by FTX showed itself in the coming months.
Overview of Global Markets and Leading Crypto Bitcoin
When we look at the global market, we see that the main assets, except for Crude Oil and the US Dollar, have generally performed poorly. Leading crypto Bitcoin (BTC) was one of the worst-performing assets, down 64.2 percent.
However, other leading assets could not avoid closing the year with a decline. It has made significant gains due to the supply shortage caused by the Russia-Ukraine war and increased demand as a result of the lifting of Covid-19 restrictions.
However, it erased most of its gains in the last quarter and closed the year with a 6 percent increase. The US Dollar Index (DXY) outperformed all assets. DXY lost most of its gains in the last quarter despite the Fed raising interest rates throughout the year.
Market Value of DeFi Tokens Dropped 72.9%
2022 has been a very challenging period for DeFi as well. While Terra and FTX fiascos created a meteor effect in the ecosystem, users suffered a great loss of trust. DeFi’s overall market cap remained resilient throughout the first quarter, losing billions of dollars with Terra’s collapse.
After the crash, DeFi showed little signs of recovery. Market value remained stable for the remainder of 2022.
ETH and DeFi tokens showed a slight recovery until the Merge upgrade in Q3 but fell short compared to the levels at the beginning of the year. Worse still, the total value of the DeFi market fell 24.4% to $34 million after the collapse of FTX in the fourth quarter.
BTC rose slightly in Q3 of 2022. After hitting a yearly low of $17,760 in Q2, BTC remained mainly in the $18,000 and $22,000 range in Q3, reaching a three-month high of $24,433.
NFTs in 2022
After the collapse in the cryptocurrency market in May, trading volumes bled seriously, while the NFT winter in 2022 was also quite harsh.
NFT trading volumes declined sharply after the crypto market crash in May. In December, it amounted to $ 400 million. This equates to only 7 percent of the monthly volume in January. Ethereum NFTs continued to dominate more than 90 percent of the market in 2022. These projects include Pudgy Penguins, Bored Ape and Azukis from popular blue-chip collections.
CoinGecko’s 3rd Quarter 2022 ReportYou can find it here.