A brief review of important events in the crypto industry in 2022

The crypto industry in 2022 has experienced similar declines to 2014/2015, but is still some distance from the market bottoms of 2018/2019 and 2019/2020. Over the past year, many major events have occurred in the crypto industry, making 2022 an extremely extraordinary year for the industry. Global macro events and black swan events, such as the collapse of the Terra ecosystem and the bankruptcy of the FTX exchange, have presented cryptocurrencies with many obstacles, however, the industry has shown great resilience and continues to make progress. In the coming year, we can expect more Web3 trends to emerge, which will become an important development direction for the industry. For many investors, it is important to understand the major events in the crypto industry in 2022. Let’s briefly review them below.

Big events in the encryption industry in 2022

·ATH in the NFT market

In early 2022, the encryption market began to decline, but NFTs are a minority One of the best performing assets remains strong. The NFT market reached all-time highs (ATH) in January, with OpenSea’s astronomical value and the Bored Ape Yacht Club’s push being largely responsible. In this month, NFT transaction volume reached a staggering $17 billion.

·The Russia-Ukraine war escalated (February)

In February, the conflict between Ukraine and Russia broke out again, causing a serious impact on the global economy. In this context, the neutrality of cryptocurrencies is on full display. Bitcoin is used to provide donations to Ukraine and Russia to avoid the impact of sanctions.

·President Biden signs long-awaited executive order on cryptocurrency (March)

President Joe Biden issues an executive order urging the Federal Reserve to investigate whether digital currencies can be created and control cryptocurrencies .

·The Collapse of Terra LUNA (April-May)

The collapse of LUNA and its stablecoin TerraUSD (UST) triggered a $40B market crisis. A domino effect began that led to the downfall of Three Arrows Capital (a crypto hedge fund) and its creditors, including Voyager and BlockFi. The total value locked in DeFi fell by 50%.

·The Federal Reserve begins quantitative tightening (June)

The Federal Reserve’s money printing policy, also known as “quantitative easing”, played an important role in promoting the previous global bull market. However, after the Fed printed $16.38T, they decided to reverse this policy through "quantitative tightening," which involves significantly raising interest rates to reduce the amount of money supply in circulation. The world went into full-blown bear market mode.

·EU takes steps to regulate digital assets (July)

In late June/early July, European lawmakers agreed to regulate cryptocurrencies, the Market for Crypto-Assets (MiCA). This is the EU’s first attempt to create a comprehensive regulatory framework for digital assets in the region.

·Blackrock partners with Coinbase (August)

BlackRock, the world’s largest asset management company, partnered with cryptocurrency exchange Coinbase in August, a move that will benefit Wall Street and the cryptocurrency industry.

·Ethereum Merger (September)

One of the most anticipated events in crypto is the transition of the Ethereum blockchain network from Proof of Work (PoW) to Proof of Stake (PoS) . On September 15, 2022, the so-called “merger” was successfully completed, reducing Ethereum’s energy consumption by approximately 99.95%.

·Google Cloud partners with Coinbase for Web3 crypto payments

On October 11, 2022, Google and Coinbase announced a promising partnership that will enable select customers to use Cryptocurrency payment cloud service. Elon Musk Bought Twitter (October) One of the largest acquisitions this year occurred on October 27, 2022, when ·Elong Musk

took over Twitter for $44B. Memecoins like DOGE and SHIB surged, while crypto giants like Binance funded and brainstormed $500 million in the platform’s Web3 future.

·FTX, Alameda and their related companies

Collapse (November) FTX collapsed due to lack of liquidity and poor fund management, and many investors subsequently withdrew their funds. The value of FTX’s native token, FTT, plummeted, dragging other tokens including Ethereum and Bitcoin to two-year lows on November 9. Other exchanges were affected by the FTX collapse, including BlockFi, which declared bankruptcy on November 28.

The above article is the editor’s brief review of major events in the encryption industry in 2022. Market cycles come and go, but the big picture remains crypto. The desire for decentralized payments, Web3 experiences, and self-hosted financing has reached the point of no return and will continue to exist. DeFi is growing exponentially before 2022, leaving room for mistakes that we will have to learn from this year. Nonetheless, technological progress is still the number one driver of cryptocurrency progress, and even if prices do not immediately reflect it, blockchain will still be a disruptive technology and a truly decentralized financial system will be established in 2023.

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