The crypto industry has seen a drop in trade volumes in the year ending 2022. Crypto exchange platforms ended 2022 with the worst performance in the past two years, according to reports from The Block’s Data Dashboard.
While comparing the crypto trading volumes of 2022 to that of previous years, it was observed that exchange platforms ended 2022 with records similar to that of 2020 when the Bitcoin price was above $20,000.
The prices of crypto were observed to have fallen to a considerable extent in 2022 because Bitcoin started trading at $47,000 in January 2022 compared to its price of $16,000 in December.
In November 2022, Reuters news published a report on the top crypto exchanges by trading volume according to analysis from CoinGecko. Binance exchange headed the list with a trading volume of $4.953 trillion while Kraken secured the tenth position with a trading volume of $237.48 billion.
Pressure from the Crypto Bear Market
The low crypto trading volumes recorded in 2022 were caused by certain factors in the crypto market which include the abrupt collapse of the defunct FTX exchange as well as the firm filing for bankruptcy protection.
Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC) while speaking on the collapse of the insolvent FTX exchange and the current crypto bear market, stated that the collapse of FTX will bring about more restrictions in the industry.
Charles Hoskinson, the creator of the Cardano blockchain platform, believes the unrest around FTX to be the last unpleasant development of the bear market. Hoskinson stated that the crisis in FTX will cascade down to the entire blockchain industry because Sam Bankman-Fried, the CEO of the defunct FTX was a pioneer in the industry.
Kathleen Breitman, CEO of blockchain company Tezos, gave comments that a small minority of crypto businesses will survive and thrive after the current crypto bear market. She added that the current bear market is still far from experiencing a bull despite the resurgence of the market at the time.
