Crypto Trend Prediction 2023: ViaBTC Capital and CoinEx Annual Report

ViaBTC Capital and CoinEx publish Annual Report 2022: 9 Sector Review and Crypto Trend Forecast in 2023.

In January 2023, ViaBTC Capital and CoinEx jointly released the 2022 Annual Report to provide data analysis and insights across nine industries, including:

• Bitcoin
• Ethereum
• stable coins
• NFT
• public networks
• DeFi
• SocialFi
• GameFi
• regulatory policy.

This report also predicts the trend of cryptocurrencies in 2023.

According to the report Influenced by factors such as the macro environment and the transition from bullish to bearish, the entire cryptocurrency industry turned bearish in 2022. After the Earth crash in May, most of the cryptocurrency sectors were hit by the bearish impact. Below you will find an overview per segment.

Bitcoin

In 2022, the overall performance of the Bitcoin remained slowwith sharp price and trading volume decreases compared to 2021. The price at the end of 2022 even fell below the peak of the last bull market.

Bitcoin’s price development throughout the year is clearly influenced by the pace of interest rate hikes in the US, but as they continue to rise, their impact on the coin’s price gradually diminishes. As for BTC mining, network difficulty has remained at all-time highs.

About that, mining revenues plummeted and miners had to retire their old models. Influenced by multiple factors, the mining industry experienced a strong crowding out effect, pushing small mining company owners out of the market for various reasons.

At the same time, long-established mining pools and mining companies have managed to maintain a certain level of stability.

Ethereum

The primary statistics of Ethereum had a downward trend in 2022. In addition to secondary market price and trading volume, on-chain data including TVL, transaction fees, active addresses, and burn volume also plummeted.

Despite this, the network has made a lot of progress in 2022. On September 15, Ethereum completed the historic transition from PoW to PoS. The merger significantly reduced energy consumption and daily output from the power grid, reducing dumping pressure from secondary markets.

Meanwhile, Tier 2 projects such as Arbitrum, Optimism, zkSync, and Starknet have released all or part of their mainnet. Although the daily transaction volume was much lower than the Ethereum mainnet, the projects surpassed Ethereum in terms of the number of addresses.

Also, the gas fee was usually 1/40 of that for Ethereum. At the same time, the network also saw an exponential rise in gas rates in 2022.

stable coins

The stablecoin market as a whole was flat in 2022. during the year, stablecoin supply fell from $157 billion to $148 billion, down 6%. In that sense, the decrease was not substantial.

With regard to centralized stablecoins, The USDT maintained its dominance, while the BUSDfrom Binance, is growing fast. On the other hand, algorithmic stablecoins were hit hard by the LUNA crash, which shattered confidence in decentralized stablecoins and reduced trading volumes.

As a result, there has been a marked decline in the number of new decentralized stablecoins.

Public networks

Despite difficult market conditions in 2022, public networks remained a competitive sector. Due to the surge in demand due to congestion on the Ethereum network, the new low-fee public network maintained a brilliant performance prior to May.

However, as other bad news brewed, a series of bankruptcies followed. Many public networks were hit hard and the decline was even worse than Ethereum’s. In May, the Earth collapsed in just a few days, becoming the first known public power grid to fail.

In addition, the collapse of the earth was a signal that the market was completely bearish. In November, hit by the fall of FTX and Alameda Research, the price of the Solana token and its TVL fell again, and projects within the ecosystem were also affected.

Other new networks like Fantom and Avalanche also struggled. At the same time, several new public networks, including Tier 2 projects such as Arbitrum and Optimism and meta-related networks such as Aptos and Sui, will debut in 2022.

NFT

Last year, the NFT sector declined after its initial boom. In April, the NFT market cap reached $4.15 billion, an all-time high; in May, fueled by the emergence of Otherside, a metaverse NFT collection developed by Yuga Labs, the industry’s transaction volume hit a record $3.668 billion.

But soon after, as the NFT market became sluggish, trading volume declined. Meanwhile, the price of blue-chip NFTs plummeted, as did the price of ETH, negatively impacting the market. On the other hand, the number of NFT holders continued to grow, reaching a record high in December.

DeFi

DeFi TVL also showed a downward trend in 2022. During the May LUNA/UST meltdown, mainstream currencies witnessed the most spectacular crash in cryptocurrency history., followed by the collapse of TVL. In addition, DeFi suffered from frequent hacks throughout the year, leading to security concerns.

In terms of innovation, although trends about DeFi 2.0 could be seen from time to time in the first two quarters of 2022, along with the OHM drop and the (3, 3) meme, DeFi 2.0 turned out to be almost a completely false story , and the market has turned its attention to DeFi 1.0 infrastructure projects like Uniswap, Aave, and MakerDAO.

Despite the bearish conditions, major DeFi projects, including AAVE and Compound, managed to keep their business stable and attracted many new users of certain CeFi projects (such as Celsius and FTX).

SocialFi

In 2022, the blockchain industry continued to explore new opportunities for SocialFi. THEOver the course of the year, we saw the emergence of iconic terms such as Fan Token, Soulbound Token (SBT), Web3 Social, and Decentralized Identity (DID).but the PMF (Product-Market Fit) has never been identified.

Despite this, SocialFi still managed to introduce us to some famous projects, including the STEPN lifestyle Web3 app with SocialFi elements, the Galxe referral network, the BNB Chain SPACE ID domain name service, the Lens Protocol social graph, and the Learn gamified social Web3 Hooked Protocol.

Moreover, the Qatar World Cup 2022 Fan Tokens has also helped to attract a lot of attention from the market. As a result, instead of plummeting under the impact of the recession, Fan Tokens also performed slightly better in 2022 than in 2021.

GameFi

The year 2022 was also the beginning of the GameFi slump. There has been no significant innovation in the P2E blockchain gaming model. With user growth and trading volumes slowing, institutional investors have stopped seeing the P2E model.

In the first half of the year, STEPN’s Move-2-Earn model took the spotlight with its innovative dual approach of tokenomics and marketing, bringing a new dynamic to GameFi.

Last year, Blockchain projects raised the most funds in April, with blockchain investments totaling $6.62 billion. However, the market has not responded to other project teams focusing on the more symbolic reality model.

As the multi-chain ecosystem grew in popularity, Ethereum maintained its dominance in the GameFi ecosystem, but the growth rate of projects on the network did not match that of BNB Chain and Polygon.

In addition, most networks relied heavily on their core projects, and there were still many low-quality GameFi initiatives with a small user base, substandard interactions, and low trading volumes.

Regulatory Policy

Overall, 2022 has been full of ups and downs for the cryptocurrency industry, but regulation is moving in the right direction. Regulators have made a lot of progress over the past year.

• The United States has launched a regulatory framework for cryptocurrencies;
• the European Union initially adopted the MiCA Act and the TFR Act;
• the United Kingdom and South Korea have made progress in setting up the relevant organisations;
• Russia and Hong Kong promoted the discussion and implementation of cryptocurrency mining and virtual asset securities policies.

The turmoil that befell the cryptocurrency sector in 2022 was partly a result of plummeting funds and partly a result of regulatory loopholes and crackdowns.

Last year, The bankruptcy of Terra and FTX, two of the leading cryptocurrency projects, prompted regulators and law enforcement to further improve cryptocurrency oversight and investigations.

For more details, visit ViaBTC Capital’s website via the link:

https://capital.viabtc.com/blog/ViaBTC-Capital:-2022-Review-and-2023-Forecast-in-Crypto-Industry-193?category=0&lang=en_US