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On the eve of the new 2023, traders and investors in the cryptocurrency market froze in anticipation of forecasts and predictions about the future state of the market. In this article, Gotbit experts will tell you what awaits the cryptocurrency market in the coming years: what was the size of the market in 2022 and what will it be in 2023, how big is the cryptocurrency market really, what are the growth rates of the cryptocurrency market.
What was the cryptocurrency market like in 2022
The situation in the cryptocurrency market in 2023 cannot be called unambiguous. The cryptocurrency market suffered a serious correction, which led to a series of global shocks. The period in which the cryptocurrency market is currently located can be called a crypto winter. This is especially true for the events of the end of 2022, when the largest cryptocurrency exchange, FTX. Defrauding clients and using their funds to finance other projects has resulted in thousands of cryptocurrency investors and traders finding themselves in a situation where their money was lost. In addition, the situation worsened due to the fact that in addition to the closure of the FTX, other exchanges began to close. There were about 50 of them. Some of them were in one way or another affiliated with the FTX, and some of them simply lost a significant part of their clients, as in an attempt to save their own funds, thousands of traders withdrew their money from their accounts.
It is impossible not to note the negative impact on the market from the situation with the TERRA blockchain. As you may have known earlier, the creator of the Terra blockchain decided to create a stable coin that would be directly linked to the value of the dollar. This coin was called Terra USD. However, contrary to his own idea of strengthening this coin with the help of the dollar, an algorithmic stable coin was used.
Traders were promised a tempting return of 20%, but at some point, the pyramid created by Do Kwon collapsed. The billions of dollars that cryptocurrency investors invested in the stablecoin Terra USD disappeared, which led to a big scandal that caused a new wave of decline in the cryptocurrency market.
Also, one of the reasons for the unrest in the cryptocurrency market, which probably will not leave us in the new 2023, is the difficulty of mining. The fact is that at the beginning of the development of the market, the possibility of extracting cryptocurrency from the air attracted a huge number of people. Today, however, the extraction of new coins requires extremely expensive equipment, as well as large capital to provide the required amount of electricity. Some analysts predict that over the next few years, the situation will develop in such a way that the cost of electricity and equipment will exceed the value of the coin itself. In this case, the volume of production of new coins can drop significantly.
|Month||Total volume of crypto market capitalization|
|January||Over 2 trillion dollars|
|March||1 trillion 710 billions dollars|
|July||1 trillion dollars|
|September||921 billion dollars|
|December||798 billion dollars|
How the size of the crypto market has changed in 2022
The size of the cryptocurrency market is determined by the volume of its capitalization. In order to understand how much the size of the crypto market has changed in 2022, it is necessary to compare the data on the capitalization of the entire market, as well as individual coins, for the beginning and end of the year.
The size of the crypto market in 2022 has significantly decreased. The numbers speak for themselves. So at the beginning of this year, the capitalization was about 2.3 billion dollars. At the same time, the volume of the dollar decreased to 800 billion by the end of the year. The size of the crypto market has decreased by almost sixty-five percent, which indicates a significant drop in the market.
The negative dynamics of the capitalization of coins also affected stablecoins. The volume of capitalization of the largest of them has decreased significantly this year. Thus, the capitalization of USTD has decreased by almost 15 percent, and the AIM has also fallen by forty-four percent.
Despite the fact that the Bitcoin exchange rate set its maximum of forty-eight thousand two hundred dollars in May, already in November 2022 the value of the coin reached a two-year low and amounted to fifteen thousand four hundred dollars. If we consider the dynamics of the cost of bitcoin for the whole of 2022, it becomes clear that since the beginning of the year, the coin has become cheaper by almost sixty-four percent.
The negative dynamics of the value of the coin also affected Ethereum. The fact is that in 2022 the value of the coin fell by almost sixty-eight percent. Now the price per coin is one thousand two hundred dollars, while in June 2022 it generally reached a minimum of $900, which was observed a year and a half ago.
How big will the cryptocurrency market be in 2023
Today, thousands of cryptocurrency traders and investors are wondering how the size of the cryptocurrency market will change in 2023. Will the market be big or will we continue to observe negative dynamics.
It should be said right away that the cryptocurrency market has historically been a risky investment area. But despite this, we can say that such fundamental coins as Bitcoin and Ethereum will be just as reliable in 2023. These coins are backbone, therefore they largely determine the stability of the entire crypto market. uh
It is also not worth talking about the fact that in the future the cryptocurrency system may completely collapse due to the crisis in 2022. Of course, the crypto winter may continue, but this only means that the market is dynamic. He can fall and rise, this is his natural state. It is impossible to predict 100 percent what the size of the crypto market will be at the end of 2023, because many scandals in 2022 could not be predicted in advance.
However, many major players in the market and analysts say that we are more likely to see the end of the crypto winter. Various funds and investors are also interested in cryptocurrency, so they are ready to invest their money in the development of the market.
Losses are still waiting for us to fall some coins and exchanges, as the echoes of the scandals of 2022 will haunt the market in 2023.
You can also say that bitcoin has every chance of getting a significant share
of the cryptocurrency market, because, despite the crypto winter of this coin,
everyone also trusts.
Answers to important questions about the size of the cryptocurrency market
Is it true that cryptowinter 2022 will continue into 2023?
There is such a possibility, but it is still small. Most analysts predict the end of the crypto winter.
What is the size of the crypto market at the moment?
As of December 29, 2022, the size of the cryptocurrency market is 798 billion dollars.
What events can affect the size of the crypto market?
It was almost impossible to predict such scandals as the ruin of the Federal Customs Service, but we can safely say that the tightening of cryptocurrency turnover by government agencies can significantly affect the size of the market in 2023.
What sources should you trust when it comes to news about the cryptocurrency
If you want to know the latest news about the size of the crypto market, new trends, scandals and market dynamics, you can safely trust our blog. We always cover relevant and interesting news and topics that will help both novice investors and large players develop.