The company’s representatives noted that the pace of progress in the industry has not slowed in 2022

​The Block Research analysts call the crypto market trends for 2023

21.12.2022 - 16:15

254

3 min

In 2022, the digital assets industry did not experience the same euphoria as the previous year. And yet, the pace of news, events, and technological advancement has not slowed. The Block Research distilled this year’s development into more than 420 unique research pieces for our members.

We present the 2023 Digital Asset Outlook Report to provide all readers with a comprehensive outlook on the rapidly evolving industry. This report provides a granular look at the most significant developments in cryptocurrency in 2022 and highlights several key trends to watch over in 2023.

The 199-page report covers 10 sectors within the cryptocurrency industry:

  1. State of the general market
  2. BTC and ETH mining market
  3. Investment trends
  4. Layer-1 platforms
  5. Blockchain scaling solutions and bridges
  6. Decentralized finance (DeFi)
  7. Web3 infrastructure
  8. NFT landscape
  9. Web3 Gaming and Metaverse
  10. Macroeconomics

10 Key Highlights

  • Market performance: All top ten cryptocurrencies (BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, DOT, OKB, and LTC) by market capitalization experienced negative price returns as low as 81%.
  • Mining: As bitcoin’s price dropped more than half throughout 2022, many miners faced increasing financial distress. Core Scientific stated it would consider bankruptcy if its financial situation did not improve.
  • Investment trends: The number of funding deals increased 18% year-on-year, and the NFTs/Gaming vertical attracted the most funding this year at $8.3 billion. Nevertheless, there are indications of a slowdown as the overall growth of funding decelerates compared to the previous year.
  • Crypto hires: Number of employments in the digital asset industry jumped over 351% to 82,248 from 18,200 in 2019. Yet, the number of layoffs peaked in 2022 at 9,564, with Crypto.com laying off the most employees, contributing 24% to the total attrition, followed by Coinbase, Kraken and Bybit, each contributed ~6%.
  • Layer-1 networks: As developers work towards abstracting blockchain complexities, 2022 saw an emergence of application-focused chains, such as Cosmos ecosystem, Avalanche subnets, and Polkadot’s parachains.
  • Layer-2 solutions: Optimistic rollups are currently dominating Ethereum-based rollups. It remains to be seen whether it can maintain its position as rollup space becomes increasingly competitive, with Celestia set to launch next year.
  • Decentralized Finance (DeFi): DeFi space experienced a contraction in 2022. Value locked in DeFi decreased 74.6% from $166 billion to $42.1 billion. Terra’s ecosystem collapse in May marked the most drastic crash in value locked.
  • Non-fungible tokens (NFTs): 2022 had been a seminal year for NFTs, with Solana becoming the second home for NFTs, a heated debate over creator royalties, Yuga Labs’ ecosystem expansion, a war on IPs, storytelling NFTs, and much more.
  • Web3 Games: Web3 games have not proven market-proof as they suffered from user retention and token price crashes. They have also undergone unsuccessful rebrand attempts from play-to-earn to play-and-earn, play-to-own, and free-to-own. We believe that Web3 games in 2023 will focus more on game launchers, wallets, and on-chain games.
  • Metaverse: Web3 Metaverse struggled to find the right product-market fit in 2022, and it will continue in 2023. That said, we are looking at The Sandbox, which may do a full launch in 2023 and change the trend.

This material is taken from the website theblock.co.

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