Global Crypto Economy Shrinkage Up To $1.5 Trillion
About a year ago now, the crypto economy could easily be evaluated at a whooping value of $2.334 Trillion. However, from 20th December 2021 till 20th December 2022, the economy lost roughly $1.5 Trillion.
Today, the global crypto economy is resting at a value which is less than a trillion i.e. $848 Billion approximately.
It is important to mention that if we go over 12 months, we would realize that the overall valuation of the crypto-verse was much higher than $2.334 trillion.
The overall valuation of the cryptocurrency industry had managed to surge all the way up to $2.8 trillion.
If it weren’t for the Chinese blanket banning of crypto mining and other crypto operations, the valuation would have crossed $3 trillion.
Lead Coins’ Demise
Precisely on 20th December 2021, Bitcoin, i.e. lead cryptocurrency by market cap as well as value, was exchanging hands at $46,000. While the second largest crypto by market cap and in value, Ethereum, was valued at $3,847.
It may however be taken into account that 2021 was the year in which every crypto coin saw its highest value ever.
For instance, Bitcoin’s best-ever value was more than $69,000 per unit and this happened in mid-November 2021. Similarly, Ethereum’s all-time high value was more than $4,500 and which was also seen in the same time period.
At that time Bitcoin single-handedly dominated the global crypto economy as the lead coin’s market cap alone was exceeding $1 Trillion.
As of today, Bitcoin’s as well as Ethereum’s gains until mid-November, 2021 have been sliced even less than half.
Disturbance in Top-Tier Rankings
Cryptocurrencies’ ranking was disturbed which was dominated by Bitcoin, Ethereum, Binance’s BNB, Tether, SOL, USDC, Ripple, ADA, LUNA of Terra, etc.
In 2022 entire Terra network collapsed and consequently, the network’s native coin, Luna, is no more and hence lost somewhere in history.
SOL couldn’t maintain its rankings amongst the top ten.
Furthermore, there were only two stablecoins that held positions in the top 10 but currently, there are three on the list.
Musical Chair Game
Lead meme coins also paved their way into the top-10 list wherein DOGE is followed by SHIB.
Exactly 12 months ago, USDT i.e. Tether was expanding phenomenally with its total market cap above $77 Billion. However, the present total market cap of USDT is less than $67 Billion.
Although slow yet USDC slightly boosted its total market cap which is $44.43 Billion now and $42 Billion a year ago.
Losers and Gainers
The ultimate losers in the top tier were however AVAX of Avalanche and SOL. Between December 2021 till December 2022, both ranked top competitors in accumulating losses and suffering massive value declines.
For instance, SOL’s value was reduced by more than 93% against the US Dollar while AVAX’s value lessened by almost 90%.
At that time, SOL was holding 5th while AVAX was holding 8th position. Today they are sitting at the 18th and 20th positions respectively.
Decreased Caps but Top Tier Positions Secured
A year ago DOGE was craving for securing a position in the top 10 but couldn’t. DOGE did make its way into the list in 2022. However, its present market value is much less than what it was when it wasn’t in the top-10 list.
For example in December 2021, DOGE’s market cap was roughly $21 Billion which is now approximately $10 Billion.
Similar was the case with Polygon which couldn’t be found in the top 10 back then but now it found its way into the list.
However, in the past 12 months, Polygon’s market cap has been sliced half from $14.7 Billion to $7.16 Billion.
Of course, 2022 neither commenced on a high note nor does it seem to end on the positive side. Would 2023 be the end of crypto? Only time will tell.