2022 – A Rough Ride for Crypto Industry
2022 had been a rough ride for all industries, including the crypto industry from which a market cap worth $2 Trillion was shrouded in mist.
The industry was once the fastest growing and all other trading markets were afraid they would get surpassed. But things were not going to go in favor of the crypto industry and they got worse for all trading industries.
It was a year that would always be remembered in the crypto industry as the longest ‘winter season’ ever occurred. Even when the year came to an end, people were afraid that the next year would be the same.
The season was so severe that it gave rise to defaults, financial hardships, liquidity crises, and bankruptcy filings in the industry.
On the other hand, the seasons severely impacted individual values of entire digital assets, be it crypto, DeFi, NFTs, Metaverse, etc.
The worst of them all was the crash of the leading decentralized crypto platform which once dominated the industry by the name “FTX”.
FTX’s crash has left a daunting long-lasting chain effect which is currently being followed by several major crypto derivative firms.
DeFi Economy Rebounding
The hope however has not been lost but, as a matter of fact, has been re-ignited with 2023. The economies of cryptocurrencies, led by Bitcoin and Ethereum, are recovering slowly yet commendably for the past two weeks.
Similarly, the economy of DeFi is also bounding back and a major rebounding was witnessed within this week alone. It is because the lost confidence of the investors is returning.
Things are becoming quite favorable for cryptocurrency and very interesting for investors.
About 30 days ago i.e. on 17th December 2022, DeFi’s economy was not more than $243 Billion. As of today, the said economy now exceeds $321 Billion.
This means that in the past 30 days, there had been an increase of $78 Billion in the global DeFi economy.
Apparently, the decline was due to digital assets’ value shrinkage which formed part of the global Total Value Locked (TVL) in the DeFi economy.
However, the decline did not impact smart contract users’ interests which continued to gain momentum despite odd conditions in the market.
Smart Contract Leaders
In terms of smart contracts, Ethereum and Cardano are the leaders of the DeFi sector and major contributors to the DeFi economy.
A month ago, Ethereum’s value declined by more than 6% while Cardano’s value declined by more than 14%. Resultantly, the global DeFi economy took a hit and went as low as $243 Billion.
However, since then positive sentiment started to re-develop which led the economy to ripe up gains of up to $78 Billion by today. The swelled-up global economy of DeFi is resting above $321 Billion.
Most interestingly, the DeFi economy also saw digital assets worth more than $5.39 Billion coming into the TVL.
Amongst the top digital assets joining DeFi’s global TVL are Solana, Oneledger, Avalanche, Harmony, Fantom, and Waves.
These smart tokes saw their values surge within the range of 37% to more than 53% in the past week. Within this week alone, coins such as Immutable X, Holo, Parsiq, Ronin, etc. turned out as biggest gainers in the DeFi sector.
Lido Protocol’s Dominance
Furthermore, stats pertaining to decentralized finance have been boosted in the past week mainly because of the rise in smart contract tokens.
Thirty days ago, the global TVL was valued at 39.9 Billion which is now worth over $45 Billion. This further indicates that TVL has increased by roughly over $5 Billion.
Within this period (i.e. 18th December 2022 till 17th January 2023), Lido turned out to be the dominating project within the sector.
Lido’s TVL is currently valued at $7.81 Billion. This represents approximately 17.2% of over $45 Billion that formed part of the TVL in the past 30 days.