By Manoj Dharra
This blog offers insight on trends and failures for the year 2022 in areas such the market, data, investment, region, application, technology, and regulation.
As the Federal Reserve kept raising interest rates and global liquidity constricted in 2022, the cryptocurrency market went into a deep bear market.
According to Huobi Research in 2022, CeFi’s institutional business plummeted by roughly 71.4%, while the market capitalization of all cryptoassets decreased by more than $2.2 trillion.
The Big Dent
After a string of unfortunate events, including the collapse of Terra and the insolvencies of 3AC and FTX, the industry was totally demolished; several big institutions, such BlockFi and Genesis, are trapped in the nightmare of either going bankrupt or being liquidated.
However, the industry’s growth did not stop there, more than US$27.7 billion in investment and financing were made in the primary market, Ethereum ushered in a new PoS age, Layer 2 experienced unprecedented growth; X2E proposed a new GameFi business model, etc.
Crypto Users
Around 320 million people use cryptocurrencies globally in 2022, with over 40% of them being Asian. The number of new users decreased from 194 million in 2021 to 25 million in 2022.
The U.S., South Korea and Russia have the largest number of visits to CEX exchanges, with a cumulative share of over 22%.
The U.S. has the largest share in DeFi, with almost six times more traffic on DeFi than the second, Brazil. South America, South Africa and the Middle East are highly interested in the crypto industry.
Southeast Asia now has 46 million crypto users, second only to North America. In most application situations in South America and Africa, cryptocurrency is used for payments and as a store of wealth, with more than a third of the population utilising stablecoins every day.
Guidelines
This year, more than 42 sovereign nations and regions have approved 105 regulatory measures and guidelines for the crypto industry; the positive ones accounted for 36% of all the policies, a significant rise over last year.
After the tumultuous year 2022, the private digital currency must be hoping to see a revival in fortune. Much will depend on the investor aspiration and more importantly, the global central banks consistency of rate hike. The former will continue to take cues from the later, who is expected to meet some bump ahead. The cooling of inflations and economic growth moderations can pave the way for rate neutralisation. Well, the jury is still out on this.
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