Coingecco called 2022 “terrible” for the cryptocurrency industry

“It seems that 2022 will be terrible for the cryptocurrency market. […] In comparison with the current moment, the first quarter seems to be a Bored Ape: Слім lull in front of the storm, ”analysts wrote.

According to Coingecko, the capitalization of the 30 largest cryptocurrencies decreased by 68% compared to the peak value of November 2021, when the indicator was $ 1.8 trillion. The reason is the collapse of the Terra ecosystem and the problems of large industry players followed by it.

Analysts noted that the volume of spare trade in the II quarter remained “relatively stable”. Observed bursts are also due to the above factors.

Another reason for the collapse of the crypto is a global macroeconomic crisis. This is evidenced by a high correlation (0.9) of the index S&P 500 with capitalization of 30 largest digital assets.

During the II quarter, the capitalization of the Defi sector decreased from $ 142 billion to $ 36 billion. The sharp fall of TVL coincided with the collapse of the Terra ecosystem – at the peak its figure exceeded $ 35 billion, according to Defi Llama.

Analysts drew attention to a decrease in onchain activity in decentralized applications-a drop in the daily number of users was recorded by 34.5% compared to April 1, 2022.

The volume of the indicator is also due to general marketout shocks. After Terra collapse, users massively brought funds to the Curve Finance and Uniswap protocols. After opening the problems of Celsius and other centralized platforms, they turned to Defi services.

During the reporting period, the volume of trading NFT also decreased by 26.2%. In June, the indicator amounted to $ 830 million – this is the worst result over the past year.

The previous mortgage crisis of 2007, investor Michael Buerry admitted that the current situation in the market is the middle of a bear cycle for bitcoin.

Recall, according to Coinshares analysts, digital gold quotes have reached the next historical maximum in the next 24 months.

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