OK, we admit it, not all of our ’12 Days of Cryptomas’ articles have direct tie-ins to the classic song! But we can promise that every edition is crafted to bring you an overview of the industry we all know and love.
It’s with that particular consideration that, in the name of Christmas cheer, DailyCoin has decided to take a step back from the bears and the FUD to bring you some of the brighter spots in the crypto market this year.
2022 has been a mixed year for the crypto sphere, to say the least. Although the industry has had numerous setbacks, with unprecedented crypto exploits, bankruptcies, and project crashes taking the headlines, it also witnessed some landslide victories and successes in several areas.
Even so, it’s not an overstatement that the varying issues encountered in 2022 have overwhelmingly impacted the industry’s growth. Let’s not forget that the crypto sector started the year in good shape before the bears got their claws into it.
A report by Chainalysis revealed that, between the start of the year and November, more than $3 billion was lost to DeFi hacks, putting 2022 on track to have suffered double the losses of 2021 in terms of hacks.
Compounding the issue was the collapse of the Terra project, which, according to some analysts, almost single-handedly threw the industry into the prevailing bear market as individual investors lost over $40 billion to the fiasco. A destructive wave rippled outward, eventually forcing notable firms, such as Celsius, 3AC, Hodlnaut, and others, into bankruptcy.
While these incidents negatively impacted the crypto sphere’s growth, it cannot be said that 2022 consisted of nothing but bad news for the industry.
The Completion of ‘The Merge’
One of the biggest positives to have graced the stage in 2022 was the Ethereum Merge. According to findings, the Merge, which took place in mid-September, manifested a network switch from the PoW model to PoS. The transition helped the network to reduce energy consumption by at least 99.95%.
The Merge paved the way for transactions to be processed more quickly, enhancing the chain’s stability and easing the process of verifying transactions. Naturally, the success of the transition gained tremendous attention across the cryptocurrency space as the industry watched on with bated breath.
In 2023, the Ethereum Foundation plans to complete other phases of the upgrade to its network, as spelled out in its roadmap. These stages have been nicknamed “Surge,” “Verge,” “Scourge,” “Purge,” and “Splurge.”
Binance Spreads Its Wings
Despite the prevailing market conditions, crypto firms continued to soar in the quest for global presence and adoption. Among them, Binance has continued to engage in a series of partnerships to extend the scope of its operations and grow crypto adoption across the board.
At the same time, as part of its mission to foster crypto usage worldwide, Binance partnered with global payment leader, Mastercard, to launch a Binance card in Argentina. This enables the exchange’s users in the region to buy goods and pay bills with cryptocurrencies.
In the immediate wake of the FTX crisis, the exchange launched a $1 billion recovery fund to help save distressed assets from imminent collapse. With all of these landmark accomplishments, the exchange has certainly had a positive impact on the sphere.
Rising Adoption Among Countries and Institutions
In November this year, a Brazilian legislative arm passed a bill approving the usage of cryptocurrencies as a payment medium. With this, the country joins the growing list of nations that have accepted cryptocurrencies as payments. African nations have particularly not been found wanting.
Bitcoin has been adopted as a medium of payment and legal tender in the Central African Republic. Ethiopia has also, in recent times, been unrelenting in formalising crypto as a medium of payment.
Influential firms, such as Standard Chartered and JPMorgan, have also made significant strides in cryptocurrencies. As a result of all these developments, the sphere has expanded its reach and sets itself in good stead to see an increase in adoption going into 2023.
Number of BTC Holders Rising Despite Sluggish Markets
Meanwhile, despite the ongoing poor market conditions, the number of BTC holders is still rising daily. Recall that following the outbreak of the bear market, the largest crypto by market cap fell to its lowest in June after trading below $19,000.
The market situation worsened with the FTX saga as the coin slipped to about $17,000. Nonetheless, it’s worth noting that the recent developments in the market have not discouraged the allure of holding the world’s leading crypto.
According to some reports, more investors are buying the dip with the confidence that BTC will bounce back soon. According to data by Glassnode, there are more than 16,000 new BTC “accumulation addresses” than before the fall of the exchange giant.
Accumulation addresses in this regard refer to at least two or more incoming BTC transactions with no sell-offs. These statistics indicate that thousands have continued to buy and hold the token despite the dip.
Over the course of the year, the crypto space has been ravaged by hacks, the collapse of Terra-Luna, and the FTX fiasco. As a result, the cryptocurrency market experienced a steep decline in prices across the board.
However, there have been several instances of extremely positive news for the space as multiple countries saw an increase in adoption. The message is clear: crypto is here to stay.