Cryptocurrency Transaction Volume Hits Two-Year Low
Next year, the cryptocurrency market is anticipated to remain bearish. In 2022, the crypto market has fallen dramatically, more than $2.2 trillion diluted in the previous twelve months. The daily transaction volume of cryptocurrency spot trading on all cryptocurrency exchanges has fallen under $10 billion for the initial time since December 2020, as per block data. Other than macroeconomic considerations, the Terra Luna and FTX collapses are the major drivers to the 2022 cryptocurrency bear market.
As per statistics supplied by Coinmarketcap, the overall cryptocurrency market capitalization was roughly $797 billion as of Wednesday, December 28. Interestingly, although the overall amount of the cryptocurrency market is around $29 billion, stablecoins have the greatest portion with roughly $27 billion. The overall volume of the decentralised financial industry (DeFi) is approximately $2.33 billion, or 7.81% of the 24-hour transaction volume of the whole cryptocurrency market.
Therefore, the cryptocurrency industry is changing to reflect the global market. Mainstream banks and major firms in the technology sector are embracing blockchain technology. In addition, governments throughout the globe are collaborating actively with cryptocurrency firms to oversee the sector in advance of its widespread acceptance.
Nonetheless, the downfall of FTX, a major cryptocurrency exchange by daily transaction volume, has sparked fears about the cryptocurrency sector as a whole. In addition, over one million FTX traders and investors are now stuck due to the failure of the FTT.
In the last two months, cryptocurrency speculators have moved in huge numbers from controlled exchanges (CEXs) to decentralization exchanges (DEXs). Furthermore , non-custodial cryptocurrency wallets, such as Binance-backed Trust Wallet and its TWT token, have witnessed a significant increase in worldwide consumer base.
In addition, from April 2022, the transaction volume of non-fungible tokens (NFT) has decreased dramatically. Recent industry leader Trump Digital Trading Cards (TRUMP) is presently rated 42 with a minimum rate of $179.27 and a 24-hour trading volume of 51.6 ETH.
A notable crypto projects struck by the bad market of 2022 is the Solana (SOL) venture, which has fallen nearly 94% over the previous year. Particularly, the FTX and Alameda networks significantly enhanced the Solana ecology. In addition, the majority of Solana crypto tokens were listed and transacted on the FTX market, and they were leveraged using the FTT tokens.
In 2023, the crypto market is anticipated to remain in a bear market. In addition, historical data and present basic elements indicate future liquidations. As a result, market experts anticipate that the overall trading volume will continue to decline, putting more cryptocurrency exchanges at danger of insolvency.
Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.