CoinGecko described 2022 as a “terrible” year for the cryptocurrency industry.
- July 15, 2022
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In the second quarter of 2022, the total cryptocurrency market cap fell by more than 50%, while the DeFi sector shrank by almost 75%. This is stated in
In the second quarter of 2022, the total cryptocurrency market cap fell by more than 50%, while the DeFi sector shrank by almost 75%. This is stated in the CoinGecko report.
“2022 looks like it will be a terrible year for the crypto market. […] So far, the first quarter looks like the calm before the storm,” the analysts wrote.
According to CoinGecko, the top 30 cryptocurrencies are down 68% from their peak of $1.8 trillion in November 2021. This is because of the collapse of the Terra ecosystem and the problems of major industry players that followed.
Analysts noted that spot trading volumes remained “relatively stable” in the second quarter. The observed eruptions are also due to the above factors.
Another reason for the collapse of the crypto market was the global macroeconomic crisis. This is evidenced by the high correlation (0.9) of the S&P 500 index with the capitalization of the 30 largest digital assets.
In the second quarter, the capitalization of the DeFi industry fell from $142 billion to $36 billion. TVL According to DeFi Llama, it coincided with the collapse of the Terra ecosystem – at its peak, the figure exceeded $35 billion.
Analysts noted the decrease in on-chain activity in decentralized apps – a 34.5% drop in daily users compared to April 1, 2022.
Explosions in the indicator are also due to general market shocks. After the collapse of Terra, users are withdrawing funds to Curve Finance and Uniswap protocols in bulk. After discovering the problems of Celsius and other central platforms, they turned to DeFi services.
In the reporting period, NFT transaction volume also decreased by 26.2%. In June, the figure was $830 million, the worst result of last year.
Investor Michael Burry, who previously predicted the 2007 mortgage crisis, acknowledged that the current market situation is the middle of a bearish cycle for bitcoin.
Recall that digital gold prices will hit an all-time high in the next 24 months, according to CoinShares analysts.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
