2022: a dark year for cryptocurrencies

While the crypto market started the year with a downtrend, the movement accelerated sharply in May. So, in May 2022, when it was the 8th capitalization of the crypto market, Terra Luna completely collapsed in a few days, taking with it its UST stablecoin, which had previously been the largest stablecoin on the crypto market.

In addition to the fact that more than 50 billion capitalization disappeared in just a few days, this event led to the bankruptcy of several well-known players, including the famous investment fund Three Arrow Capital, as well as several platforms such as Celsius and Blockfi, which made it possible to borrow their cryptos in return exchange.

But while crypto investors thought they had seen the worst, the end of the year brought its share of surprises with the collapse of the FTX crypto asset exchange.

This event was a death blow for crypto investors as Bitcoin fell below $20,000 in this way. It even bottomed out at $15,500, down 60% from last year.

For its part, while Ether went deflationary in September during the Confluence update, the second-largest crypto asset after Bitcoin has also suffered from current market conditions. At the same time, it decreased by 69% in 1 year.

For smaller-scale crypto assets, the year was disastrous. Many of the most promising assets such as Solana, Filecoin or Avalanche have dropped significantly, over 90%.

Is the weather good after the rain?

This is to be expected after such downturns. That’s just the latest news is also bad.

To be sure, the crypto asset market will not disappear and will likely continue to grow in size over the next few years. But some elements have yet to be addressed in the short term.

First, if the price of bitcoin continues to fall and the price of electricity continues to rise, many crypto asset miners will have to stop their activities, which will no longer be profitable for them.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker.