Crypto.com Year End Review and 2023 Outlook: SBT will lead us into a decentralized society

Crypto.com Year End Review and 2023 Outlook: SBT will Lead Us to a Decentralized Society

Source: Crypto.com Research

Deep Tide TechFlow

2022 will be a journey for the crypto industry. In this report, we collate the top 10 cryptocurrency events and trends for 2022, followed by our outlook for 2023.

In 2022, the global economy struggled against macro and geopolitical headwinds, including monetary tightening by central banks around the world to fight inflation, conflict in Europe, supply chain disruptions, and the lingering effects of the COVID-19 pandemic. As a result, global GDP growth is projected to be 3.2 percent in 2022, down from ~6 percent in 2021.

At the same time, inflation continued to soar to an average annual rate of 8.8%.

In addition to macro headwinds, the cryptocurrency market has also been negatively impacted by a number of events, notably   The collapse of Terra Stablecoin (UST) in May and the bankruptcy of FTX in November. These two events and the subsequent impact had a knock-on effect that affected other players in the ecosystem and dampened its confidence in the industry. At the time of writing, it's safe to say it's still the "winter of cryptocurrencies." That being said, it's natural for market cycles to fluctuate between bear and bull markets, as the chart below shows.

Ethereum's September 15, 2022 merger is widely regarded as one of the most anticipated cryptocurrency events of the year. One of the positive effects of the merger is that Ethereum's energy consumption has decreased by 99.95%, as PoS does not require the same energy-intensive mining machines as PoW. In contrast, PoS blockchains rely on verifiers to verify transactions. The PoS Ethereum blockchain is estimated to use about 1% of PayPal's energy, which is orders of magnitude smaller than the PoW network.

In   After the FTX bankruptcy in late 2022, we saw decentralized trading platforms (DEX) take a higher share of total cryptocurrency spot trading volume. DEXs accounted for 14% of spot trading volume as of November 2022, compared with 9% in October.

In 2022, new Tier 1 (L1) blockchains are in the spotlight: notable examples are Aptos and Sui, both of which were created by former developers from Meta's Diem team. As a result, Sui and Aptos used similar techniques, including a parallel engine and the Move programming language.

PoS 质押默认需要锁定 Token ，这意味着Token持有人必须在赚取收益或保留流动性之间做出选择。Liquid Staking 试图通过让 Token 持有者享受两全其美的方式来解决问题——在享受 PoS Token 收益的同时保持一定程度的流动性。流动性质押为质押者提供的灵活性是它在 2022 年蓬勃发展的一些原因。根据流动性定投 Token 的市值，ETH 是最受欢迎的 Token 选择。Lido Finance 继续引领流动性质押市场，占据约 78% 的市场份额。

In the first half of 2022, the NFT market was dynamic and trading volume was strong. In May 2022, OpenSea's daily trading volume peaked at $544 million, This is driven by the "Otherdeed for Otherside "series from Yuga Labs, the company behind blue chip Bored Ape Yacht Club (BAYC) NFT. Despite weak trading volumes in recent months, NFT collaboration and innovation continue.

Despite the market downturn, there were still about 1 million daily blockchain gamers through most of 2022. Wax Blockchain is currently leading the way in terms of the number of daily gamers, 315,000 as of this writing. Wax has a lot of top blockchain games like Splinterlands and Farmers World.

Blockchain-based social applications gained traction in 2022, as evidenced by the dramatic growth in the total number of unique wallets interacting with social DApps' smart contracts.

Capital investment and project incubation in the blockchain sector continues to grow. About $29 billion was raised in the first half of 2022 alone, with infrastructure and Web3 startups, including NFT, blockchain gaming, and metacomes, making up the vast majority of the pool. In the first six months, the total amount raised has already surpassed the figure for 2021, which saw $30.2 billion invested in 1,313 rounds. Industry-wise, investment in the blockchain services category was distributed consistently throughout the year. It received the most money, with a total of 592 rounds, followed by the DeFi and GameFi sectors.

Security concerns are a focus of any blockchain network. In 2022, we see a lot of hacks and vulnerabilities. At the time of writing, the total amount of cryptocurrency hacks in 2022 is about $3.7 billion, a 63% drop compared to 2021. More than a third of the total was stolen from cross-chain Bridges.

The prospect of 2023

Despite challenging macro conditions, cryptocurrency adoption growth remained strong in 2022.

As of November 2022, the number of cryptocurrency owners passed the 400 million milestone, reaching 402 million. During the year, monthly adoption growth averaged 2.9 percent.

Depending on market conditions, we estimate that the number of cryptocurrency owners worldwide could reach 600-800 million in 2023.

在区块链游戏领域，我们预计在未来一两年内会看到一些 AAA 级游戏，这些游戏将为玩家提供新的游戏体验，将高性能的游戏玩法与区块链技术相结合。灵魂绑定 Token （SBTs）的使用越来越多，这可能是另一个潜在的市场驱动。SBTs 是与个人或实体挂钩的 NFTs，不可转让，不可交易。它们旨在通过包含持有人的承诺、证书和附属关系来代表持有人的社会身份。它类似于简历或 CV 的概念。采用 SBTs 可以引导我们进入一个去中心化的社会（DeSoc）或一个共同决定的社会性，其中灵魂和社区以自下而上的方式召开。DeSoc 以不可转让的 SBT 为基础，旨在代表 "灵魂 "的承诺、证书和附属关系，可以对实体经济的信任网络进行编码，以建立出处和声誉。  

In 2022, we are seeing an interesting phenomenon as more and more Web2 developers become interested in Web3. Downloads of two popular Web3 development libraries, Ethers.js and Web3.js, have surged tenfold since 2018. The influx of developers to Web3 will spur the growth of companies that provide Web3 development tools.

After a number of bankruptcies and hacks in the industry in 2022, we are seeing an increased focus on security and user education. The key to building a successful business model is to build trust with the end user. Going into 2023, we expect this trend toward a greater focus on security and user education to continue. On the one hand, we are likely to see more platforms investing in security audits and certifications. On the other hand, we expect to see more educational initiatives in this area, continuing the trend from 2022.

In addition to the trending topics mentioned above, developments in other areas are expected to receive attention, including new blockchain infrastructure, ZK proof, more utility-based DeFi applications, Ethereum's Shanghai upgrade and institutional adoption, and more.  

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