It’s been a roller roster ride this year for the crypto industry, but undoubtedly there have been some great bites this year. The year 2022 witnessed the most eventful moments for the crypto industry.
Some experts believe that 2022 has been a terrible year for the crypto sector and this seems truly scary to look back at the past 365 days, the crypto calendar has experienced price crashes, bankruptcies, layoffs, an increase in attacks, and a drop in investment. All of these reasons account for many people calling 2022 the worst year in cryptocurrency history.
Let’s take a look at the worst moments in the crypto industry.
- Cryptocurrency Price Crash
The cryptocurrency market reached its lows this year. The global market capitalization had declined from US$ 1.10 trillion to US$ 1.02 trillion. The risk-off attitude was driven by a strong jump in US inflation. This year, the value of the global cryptocurrency market was reduced by almost USD 1 trillion.
It made people question the future of cryptocurrency.
But, the fact is there are ups and downs in the market, but it does not mean that it will collapse. Over time, the cryptocurrency market started becoming stable once again.
- The Fall of Terra
On May 7, the price of the then-$18-billion algorithmic stablecoin terra USD (UST), which was supposed to maintain a $1 peg, began to sway and fell to 35 cents on May 9. Its companion token, LUNA, which was supposed to stabilize the price of UST, fell from $80 to a few cents by May 12.
Terra’s demise was one of the most massive capital destruction events in human history, with LUNA and UST losing more than $60 billion in combined value in a hyperinflationary death spiral. The algorithmic stablecoin’s implosion was bad enough in and of itself, but it exacerbated the credit crisis and the ensuing contagion that wreaked havoc on CeFi.
- The Collapse of FTX
The FTX debacle exposed a massive fraud in which CEO Sam Bankman-Fried used customer’s deposits as his personal slush fund to buy real estate, invest in venture deals, make political donations, and make loans to his hedge fund, Alameda Research.
However, it has once again highlighted the importance of decentralization and self-custody. NOT YOUR COINS IF NOT YOUR KEYS.
Best moments for the crypto industry
- The Merge
On September 15, 2022, the Ethereum Merge 2.0 was completed. This marked the completion of Ethereum’s transition to proof-of-stake consensus, officially deprecating proof-of-work and reducing energy consumption by 99.95%.
And, the benefit of the merge is for earning rewards on staked ETH, the Merge allows more users to participate in Ethereum’s network. The next big Ethereum innovation is sharding, which can speed up transactions and reduce fees.
- Web2 Adopts NFTs
In 2022, Reddit, Instagram, TikTok, and Twitter were among the first to adopt NFTs. It is undeniable that the stage is being set for NFTs needs to be integrated into everyday life.
This year has seen a lot of changes in the world of NFTs. Many people began it on their own, and many others have invested in it. It is reasonable to expect NFT to reach even greater heights in the coming years. We should look at all of these good things in a positive light.
Highlights of the Good Things That Happened in the NFT World in 2022
Starbucks to offer an NFT-based loyalty program using Polygon Blockchain Technology.
Meta lets you post your NFTs on Instagram and Facebook.
Indian Actress “Sunny leone” is the first Indian actress to MINT NFT and her NFT name is ‘MITFITZ
Indian Cricket Legend Sachin Tendulkar Enters World of NFTs with Rario Investment.
- Crypto Supports Ukraine
Crypto has proven to be a highly effective tool for facilitating political donations in a timely, efficient, and permissionless manner. Tens of millions of dollars have been donated to Ukraine’s defense, including a $6.5 million sale of an NFT of the country’s flag.
- Indian Bank RBI Launched Digital E-Rupee
The RBI launched the first pilot of its retail digital rupee. The Central Bank Digital Currency was introduced for the Indian market on a pilot basis on 1st December 2022. The Central bank identified eight banks for phased participation in the trial.
All the transactions in a CBDC will be done between person-to-person (P2P) and person-to-merchant (P2M) forms. This e-Rupee will be in the form of a digital token representing legal tender.
Is 2023 going to be a better year for crypto?
Well, 2022 saw many positive developments in the cryptocurrency sector, but it was also a challenging year for investors, platforms, and assets. The market suffered significant losses throughout the year, but this doesn’t necessarily portend what 2023 will bring. Although no one can say for sure, we might see a market recovery pick up its speed.
