The crypto industry has fallen in 2022 and lost more than 2.2 trillion dollars in the last 12 months. On-chain data shows that the daily size of crypto trading had dropped drastically to 10 billion dollars — the first in 2 years.
It is believed that the FTX and Terra Luna’s crash played considerable roles in the crypto bear market aside from other factors. As of December 28, 2022, the entire crypto market is worth $797 billion, as reported by Coinmarketcap.
It’s worth mentioning that the market’s total trading volume is over $29 billion and stablecoins are in the largest percentile with about $27 billion. The DeFi sector’s trading volume is at about 2.33 billion dollars — 7.81% of the entire volume of crypto in the market for the last 24 hours.
A Deeper Dive Into The Crypto Market
Many governments were working with crypto firms to use cryptocurrency for regulation and prepare for mass adoption until FTX — one of the biggest crypto exchanges, collapsed suddenly. The downfall of FTX raised concerns about cryptocurrency.
Consequently, over one million FTX traders struggled or went bankrupt after the collapse. Also, many crypto investors and traders have moved a significant amount of their digital assets to DEXes (decentralized exchanges) from CEXes (centralized exchanges ) in the last 40 days.
Moreover, as reported by Trust Wallet, several non-custodial wallet addresses have seen massive gains — a Binance-backed exchange and its TWT native token. The trading volume of NFTs (non-fungible tokens) has significantly dropped since April.
The TRUMP (Trump Digital Trading Cards) NFT, which was just launched and was in the top sales position on its release, is now ranked 42nd — its new price is $179.27, and its average sales in 24 hours are about 51.6 ETH.
Above all, Solana projects were the most affected by the crypto winter in 2022. This is a result of its tight connection to the Alameda network and FTX. According to analysts, the crypto market is showing signs of getting trapped in next year’s bear market.
Also, past data show that more losses are ahead, which may lead to a further drop in daily trading volume.