These crypto trends were chosen due to their rapid growth on sites such as Google, TikTok, Instagram, Reddit, Twitter, YouTube, and Amazon.
Cryptocurrency is still a hot topic that has piqued the curiosity of individuals, investors, corporations, and even governments. In 2022, the Crypto Market witnessed numerous occurrences, some of which were positive and some of which were negative.
The trends covered in this article have been the buzz of the crypto community in 2022.
Top 10 crypto market trends in 2023
Here is a list of 2022 crypto market trends that rattled the cryptocurrency market and community.
- Cryptocurrency regulations
- Broader Institutional Cryptocurrency Adoption
- Crypto crash
- Ethereum merge
- Play To Earn games
- Crypto staking
- CBDC
- Token Burn
- Liquidity Mining
- Move to Earn
Cryptocurrency regulations
Governments all across the world are attempting to find out how to create regulations and norms that would make cryptocurrencies safer for investors and less alluring to crooks. There has been ongoing discussion concerning cryptocurrency rules.
Central banks and securities regulators around the world have progressed from just tolerating issuance and trading activity to more regulatory participation.
For example, the US Congress has introduced over 50 measures relating to digital assets, blockchain technology, and other crypto-related policies. Some of these are the Lummis-Gillibrand Responsible Financial Innovation Act, the Digital Commodity Exchange Act of 2022, and the Digital Commodities Consumer Protection Act of 2022.
The European Union has also proposed a bill dubbed the Markets in Crypto-Assets Regulation (MiCA), which would create a regulatory framework for crypto-asset services throughout the EU.
Broader Institutional Cryptocurrency Adoption
The surge in popularity and usage of cryptocurrencies has left larger organizations with little alternative but to begin developing methods for incorporating cryptocurrencies into their business structures. The gradual acceptance of cryptocurrencies by enterprises and financial institutions indicates a wider acceptance within the financial services industry.
Some of the most respectable institutions are already using decentralized financial technology. Goldman Sachs, for example, just announced its first-ever Bitcoin-backed loan as part of a massive expansion of its crypto footprint.
In November of last year, AMC announced that it will accept Bitcoin payments from customers to purchase tickets and items. AMC added Dogecoin and Shiba Inu to the list of approved cryptocurrencies on April 16, 2022. PayPal and Square are also banking on cryptocurrency by allowing consumers to buy it on their platforms. Tesla accepts Dogecoin payments and continues to waver on accepting bitcoin payments, despite the fact that the corporation owns billions of dollars in crypto assets.
Crypto crash
The crypto market reached a high valuation of around $3 trillion in November 2021. However, by June 2022, it had lost more than two-thirds of its value due to inflationary pressures and a bleak economic outlook.
Inevitably, doubts regarding the role and purpose of crypto assets in the larger economy arose, sparking a discussion that pitted ardent proponents against skeptics.
Because Bitcoin is the largest cryptocurrency by market value, and the rest of the market tends to follow its patterns, it is a good predictor of the crypto market in general. Bitcoin’s value plummeted after reaching a high of £49,838 ($60,741) in November 2021, down to $16,612 on November 18th, 2022.
Even the institutional crypto miners that power the most popular proof-of-work blockchains, such as bitcoin, are feeling the pinch of rising energy costs and falling cryptocurrency values. Many people have abandoned their long-held “hodl” (hold on for dear life) strategy and are selling their acquired tokens at an alarming rate.
Ethereum Merge
The Ethereum merger was a significant event in the cryptocurrency sector. The Merge is an upgrade to the Ethereum blockchain, which powers crypto ecosystem breakthroughs such as non-fungible tokens (NFTs). The upgrade moved Ethereum from the proof-of-work paradigm to the proof-of-stake model, which is more energy-efficient and ecologically friendly.
The crypto market was abuzz with conjecture about how it might play out. Google added a countdown clock that displays the number of hours till the Ethereum Merge takes place.
According to a tweet from Ethereum co-founder Vitalik Buterin, the Merge occurred in the early hours of September 15.
CBDC
CBDC is an abbreviation for Central Bank Digital Currency. A CBDC is a type of electronic money or virtual money that is backed by a government’s central bank, as opposed to digital forms of money on bank accounts or payment applications, which are a commercial bank’s liability. CBDCs, as opposed to cryptocurrencies, use private permissioned blockchain networks rather than permissionless open networks.
Several central banks, ranging from Germany, France, Sweden, and the United Kingdom to Hong Kong, India, and China, are weighing the benefits and drawbacks of central bank digital currencies (CBDCs). Nigeria has previously done so with the eNaira. El Salvador, for example, approved legislation in 2021 requiring businesses to accept bitcoin for all payments, making the country the second (after Japan) to recognize cryptocurrency as legal cash.
Play-to-earn games
P2E, or Play to Earn, is a gaming concept that encourages players to earn money through playing video games. The rise of games that provide in-game microtransactions as a chance to earn money in the form of NFT or crypto exemplifies the trend. These games frequently provide players with the opportunity to win incentives by playing the game more frequently.
According to a survey, more than 75% of gamers want to exchange in-game assets for money that can be utilized across several platforms. The possibility to earn money while having fun has increased the popularity of play-to-earn crypto games among users. According to Mordor Intelligence, the GameFi industry has risen tremendously and is likely to have a significant impact on the worldwide gaming market, which is expected to be worth $314 billion in 2027.
Crypto staking
Crypto staking is a method for users to earn incentives for holding cryptocurrencies. Users can receive a share of the block rewards for contributing to the network by storing money in a staking wallet.
Staking is similar to having interest-bearing savings account with a traditional bank, except that instead of the 2-3% returns you could get from your bank, staking incentives normally range between 5-30%, with some crypto platforms giving over 100%.
Staking became popular during bear markets because crypto investors choose to simply hold on to their investments rather than sell at a loss, reaping large rewards in the process.
Staking is a fantastic approach for “HODLers” to maximize their earnings and minimize their losses by creating a passive income on the coins in their portfolio. Simultaneously, staking stablecoins (also known as “lending”) entirely is a relatively low-risk strategy to generate revenue even in a bear market because you don’t have to worry about how declining prices will affect your holdings.
Token Burn
Token burn, also known as crypto burning, is the process of destroying a specific number of tokens in order to lower the total amount of tokens in circulation. The goal of a token burn is to reduce inflation and boost the value of remaining tokens.
Shiba Inu developers announced the SHIB Burning Portal in April 2022, with individuals who opt to burn their SHIB tokens obtaining a new token, burntSHIB, which pays out incentives in the ERC-20 token RYOSHI.
The BNB Chain recently completed its 21st BNB burn, as well as its final quarterly burn of 2022. The burn comprised the Auto-Burn function, the Pioneer Burn Program, and a part of each transaction’s gas fees.
Binance burned 5.5 billion luna tokens, representing 0.08 percent of the circulating supply of the coin.
Liquidity Mining
Liquidity Mining refers to the practice of profiting from the gap between the purchase and sale prices of an asset or commodity. The term is frequently used in the cryptocurrency market, where investors can quickly and profitably buy and sell digital currencies.
Liquidity mining is a critical necessity for the operation of decentralized exchanges, which require liquidity to enable trading. Liquidity should be available on decentralized exchanges to facilitate trading between diverse token pairs. Users are encouraged to provide liquidity to decentralized exchanges through the incentive approach associated with liquidity farming or mining. As a result, the majority of liquidity pools include trading pairings with which customers can deposit the two cryptocurrencies.
Move-to-Earn Games
M2E is a concept in gaming crypto finance that encourages individuals to exercise more in order to improve their overall health and well-being. Move-to-earn games pay users in cryptocurrencies for activities such as working out, running, or walking.
Gamers liked earning free Bitcoin – or local tokens that could be transferred into BTC – and the move-to-earn crypto frenzy made it possible for fitness aficionados to invest even more.
Conclusion
Negative trends in the crypto market, like the crypto crash, had led to a frenzy in the crypto communities. However, there have also been some beneficial breakthroughs that had excited the communities.
The progress of cryptocurrency will not end here; additional new breakthroughs in the crypto field are predicted, which will influence the future of the market.
