January 26, 2023

The 2022 Crypto Recap Is This Year’s Worst Year Since the Crypto’s Emergence

Over the past few years, the cryptocurrency market has been emerging. Along with cryptos, there has also been a significant increase in the way blockchain works. Blockchain as a technology for financial transactions is being explored in greater detail. Use Tesler to start bitcoin trading with trusted bitcoin trading platforms.

Cryptos and their rise in the global market

Many people saw cryptos as an opportunity to earn easy money. Undoubtedly, cryptos have an increased risk factor in it. Hence, it is recommended that anyone interested in cryptos needs to have a high-risk appetite. In 2017, there was a significant increase in the way cryptos operated. The investments skyrocketed, with the prices of each token reaching an all-time high. The price of Bitcoin, Ethereum, and other popular tokens became pricey. Many people found this as an opportunity to earn easy money. Forwarding to 2021 became the best year for crypto investments. The price of Bitcoin touched an all-time high of $69k per token. Many novice investors were unable to make this token their affordable dream. Early investors made a huge volume of profit through this price increase. 

Crypto performance in 2022

Despite the peak increase in 2021, the year 2022 did not work in crypto investors’ favor. The market saw a huge decline in prices for all the pricey tokens. Despite Bitcoin touching $69k, the token was unable to sustain the market pressure. The prices of all crypto tokens came down, giving major losses to investors. The price of Bitcoin trades at $19k per token. What was pricey became affordable in 2022. The market volume of cryptocurrencies came down by less than $1 trillion. And a major of this is attributed to the reduced prices of Bitcoin. 

Despite the price surge, the year 2022 also marked the way for various other important events in the crypto industry. Let us take a look at various events that gained attention in 2022. 

Crypto donations during the war situation

The ongoing war between Russia and Ukraine since 2014 gained major attraction in 2022. In February 2022, the war escalated, and the global economy fell under pressure of it. The war situation opened up a new arena of opportunities for crypto payments. Globally, Ukraine witnessed funding and donations through cryptocurrencies. The government made it official that the country is open to accepting crypto payments. Two important crypto wallets were created to enable payment through cryptos. The country was able to raise more than $30M in funding through cryptocurrencies. The sanctions also brought forward economy to a standstill. It also contributed to the price slash of the Russian currency. While Ukraine was busy accepting cryptos, various crypto exchanges were under pressure. Crypto exchanges found it hard to block Russian citizens from investments. 

Release of a crypto executive order by the US President

Crypto regulations have been on hold for a long-time. Given the mass adoption in the industry, the US President signed an executive order for regulating cryptos. In March 2022, an executive committee was created to regulate cryptos. The executive order gave hope to investors globally. 

The hacking incident in the Axie Infinity 

This is by far the most interesting hacking incident in 2022. Axie Infinity, the leading gaming platform, was subjected to the hacking attack of the year. The interesting factor is how this attack was not discovered until six days later. The development team was unaware of any attack in the network for more than a week. The network hacking incident gave more than $500 million. 

Terra collapses under market pressure

The biggest incident and output of the market pressure of 2022 is the crash of the Terra Luna token. Terra, the native token of Luna, went completely missing from the crypto market. UST was backed by the stablecoin USD. But the price of tokens went below $1, making it difficult to stay afloat. 

The Twitter acquisition led to increased popularity for cryptos

Elon Musk is a popular name in the crypto industry. He has always showcased a positive approach to crypto payments. Elon taking over Twitter gave way to positive demand for cryptos in the industry. Many investment experts believe this acquisition will give way to increased demand for Dogecoin. The token was definitely under market pressure. However, the token came back into the limelight through this acquisition.

About the author 

Kyrie Mattos

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