Cryptocurrencies have had a very difficult year: from the failure of Terra LUNA to the crisis of FTX. Here’s a complete analysis.
2022 was one of the most difficult years for the cryptocurrency industry, which saw the failure of the Terra LUNA project, the Celsius and BlockFi platforms and obviously also the more famous FTX exchange, canceling by resulting in over $2 trillion in market capitalization of the entire cryptocurrency industry.
The case of Bitget
Despite the difficulties of the market, some projects such as Bitget have grown from all points of view; over the last 12 months, during the cryptocurrency winter, the company has made great strides in building the team, the brand and the business.
Industry-leading cryptocurrency derivatives exchange Bitget has become one of the top 3 cryptocurrency exchanges in the world in the derivatives sector thanks to tremendous achievements, such as increasing the market share by 2.6x and 8 million registered users in over 100 countries globally, despite little market sentiment after FTX bankruptcy in 2022.
Bybits
Another exchange, Bybit, also managed to gain market share after the FTX collapse, proving that crypto investors are likely turning to other solutions for storing their assets and trading, and not just the decentralized platforms.
According to the "Crypto Exchange 2022 Annual Report" of the Tokeninsight company, in fact, Bybit and Bitget are the exchanges that have grown the most in the last period in terms of exchanges in derivatives trading.
The role of Binance
In the case of derivatives trading, Binance’s dominance decreased slightly from 59% to 58%, while OKX decreased from 20% to 14%.
In any case, Binance grew from a market share of 48% to 61% in spot trading, making it the exchange that benefited the most from the failure of FTX. The exchange, among other things, had played a fundamental role in this situation, given that it was the CEO CZ who sparked the FTX case, having posted an announcement on Twitter in which he explained that he had decided to sell the FTT tokens shortly before Sam Bankman Fried’s platform officially failed.
Coinbase in crisis
Another important exchange, especially as regards the American market, Coinbase, on the other hand, does not seem to have benefited at all from the FTX bankruptcy. Indeed, the platform lost as much as 51.97% in terms of trading volumes, losing value on the stock exchange for the COIN stock. And also for this reason it announced in January that it wanted to lay off over 950 employees.
In addition to COIN, all the tokens of exchanges such as CRO, WRX, BTR and ASD also fell by more than 80% of their value during 2022, with the exception of Bitfinex’s LEO token which instead rose by 3%.
Exchange security
Also in terms of security, the bankruptcy of FTX has led to new changes and new practices for exchanges. In fact, after the collapse of the exchange, the famous CoinMarketCap site decided to add a new feature to show the liquidity reserves of the trading platforms: the so-called Proof of Reserve (PoR).
Thus, another "standard" was born for exchanges which for a few months now have in fact begun to publish their PoRs to demonstrate that they have enough funds to cover user balances in the event of thefts, hacker attacks, etc. saying.
Original article published on Money.it Italy 2023-01-19 18:08:00. Original title: Come sta cambiando il mercato crypto dopo il fallimento di FTX
