Crypto Market Cap Fell by 64.1% to $829 Billion in 2022: Report
With bearish trends in Bitcoin (BTC), Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs), the market capitalization of the global cryptocurrency market slumped by 64.1% to $829 billion at the end of 2022, down from $2.3 trillion at the start of the year.
In a similar fashion, spot trading volume on the top 10 crypto exchanges collapsed to $0.46 trillion in December, down by 67.3% from $1.5 trillion in January 2022. The deepest decline in this market occurred during the fourth quarter of the year in the aftermath of FTX’s collapse and the resulting contagion that impacted over 1 million estimated depositors, creditors and investors, the report notes.
These figures are according to the CoinGecko 2022 Annual Crypto Industry Report released on Tuesday. The report notes that BTC emerged as the worst-performing asset in the year as it sank by 64.2%.
#CoinGecko 2022 Annual Crypto Industry Report 📊
2022 was a tumultuous year for #crypto — NFTs and DeFi are among the hardest hit sectors, while stablecoins had a mixed performance.
Here are 8 key highlights you shouldn’t miss 👇 pic.twitter.com/w4n4BoSq7x
— CoinGecko (@coingecko) January 17, 2023
Also, the ConGecko report highlights that the NFT industry had its first bearish cycle in 2022 with trading volume across the top eight chains shrinking to $1.5 billion by the last quarter of the year, down from $13.3 billion during the first quarter. In addition, the DeFi market saw its tokens, minus stablecoins and wrapped tokens, collapse by 72.9% “with various governance and utility tokens losing over $48.4 billion in value.” The stablecoin market, for its part, went down by 16.6% to $27.3 billion by year-end.
Resilient Crypto Industry?
However, despite these trends, crypto adoption remained steady “with a healthy growth of BTC and Ethereum addresses.” In addition, the report noted that Ethereum staking improved significantly quarter-on-over-year, reaching 15.8 million units at the end of the year. This represents an 80% increase compared to the 8.8 million units posted at the start of 2022.
“In the first half of 2022, growth of total staked