2022 was a rough year for cryptocurrency traders.
Bitcoin lost more than half of its market cap during crypto winter and the recent FTX collapse has all but sent the entire industry into a free fall.
Using information from Blockchain.com and Crypto Compare, the data analysts at Casinos En Ligne have analyzed the latest trends in the cryptocurrency industry heading into the New Year.
According to the Casinos En Ligne report, total cryptocurrency trading volume declined by 46 percent year-over-year in 2022.
Here are the highlights from the report:
- Yearly crypto trading volume declines by 46%
- Bitcoin lost 64% of its market cap in 2022
- Total cryptocurrency market cap falls by 64%
Yearly Crypto Trading Volume Declines By 46%
In a year marked by high inflation, rising interest rates, and bankruptcies from hedge funds, lenders, and crypto exchanges, the cryptocurrency trading market saw less activity than usual in 2022.
According to CryptoCompare, cryptocurrency trading volume has declined from 14.726 trillion in 2021 to 7.974 trillion in 2022, a drop of nearly 46 percent.
January 2022 finished as the month with the highest crypto trading volume at $841.29 billion while May ($830.45 billion) and March ($744.64 billion) were next on the list of months with the highest trading volume.
Even though it finished as the second-highest month, monthly crypto trading volume fell by 62.76 percent year-over-year in May, the second-largest decline of any month.
December saw the biggest percentage decline in crypto trading volume at 68.27 percent.
Bitcoin Lost 64% of Its Market Cap in 2022
The original and most widely adopted cryptocurrency, Bitcoin was supposed to be the safest cryptocurrency to invest in for crypto traders.
According to data compiled by Coin Market Cap, Bitcoin lost 63.6 percent of its market cap in 2022.
Bitcoin watched its market cap decline from $874.90 billion on January 1 to $318.75 billion on December 31, 2022.
After briefly peaking in March, Bitcoin lost nearly 60 percent of its market cap over the next three months and has yet to recover since.
Total Cryptocurrency Market Cap Falls By 64%
The wider cryptocurrency market often mimics the price action of Bitcoin, so it comes as no surprise that the total cryptocurrency market cap has been affected similarly.
According to Blockchain.com, the total crypto market cap has also fallen by 64 percent.
The total cryptocurrency market cap dropped from 2.2 trillion on Jan 1, 2022 to 792 billion on December 31, 2022.
Even though blockchain adoption is expected to increase in 2023, it could be another difficult year for crypto investors if trading volume and consumer confidence continues to decline over the next 12 months.
Nick is a betting expert who analyzes the latest news, trends, and data in the iGaming market. With over a decade of experience in the gambling industry, Nick has developed a reputation for providing unbiased coverage and using data to add context to compelling stories.