2022 has been a tumultuous year for the markets, with traditional asset classes such as bonds experiencing unprecedented levels of volatility, even tech stocks have done poorly. Investor portfolios were heavily impacted, although crypto was not immune from the bear market, analysis of wallets showed that the majority of coins held were not being sold, indicating that this was not a mass exodus, but rather value extraction by large institutions and traders.
This market volatility has overshadowed the great advancements made in the industry. Ethereum rolled out the switch to Proof of Stake, reducing the environmental footprint of the protocol by 98%. There was also a deflationary effect on ETH, with more than $1Bn worth of ETH burned so far.
"Total value locked in Defi has dropped from the peak of $250Bn in Nov 2021 to $43Bn today. Although this is a dramatic decline, there are still 1M transactions per day on just the Ethereum network which is just one protocol. It is difficult to explain this as anything other than continuing use of the blockchain in general and decentralised finance in particular."
We have sponsored Novum Insights' Year End Report for 2022 which goes into detail about the markets and what to expect moving forward. You can view that as a PDF here >> Novum Insights Year End Review
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