The year 2022 is almost coming to an end, but many investors in the digital currency ecosystem will remember it as one of the most painful in the more than 13-year history of the industry. A lot of bad things happened throughout the year, and many of them made regulators all over the world try to keep a closer eye on things. While the industry experienced some significant milestones in terms of new trends, the overall liquidity crisis overshadowed these positive events, dampening overall industry sentiment. In this article, let's think back on the most important things that happened in 2022 and look ahead to see what 2023 has in store for us. Ethereum and Bitcoin competition Since its inception, Ethereum (ETH) has posed a formidable challenge to Bitcoin (BTC). Not that Ethereum is anywhere close to the latter in terms of market capitalization, but the network’s relevance as a hub for applications has made it the most used blockchain today. In its bid to become positioned for the future, Ethereum passed through The Merge this year, transitioning from the Proof-of-Work (PoW) consensus model to the Proof-of-Stake (PoS), making it a highly energy-efficient public blockchain network. While Ethereum is making progress in this area, Bitcoin has established itself as a safe-haven asset and is making its way onto corporate balance sheets. In 2023, regular improvements will continue to make Ethereum more valuable. And we can expect 's price to reach more than $25,000 and then climb even higher, keeping it the most valuable digital money. Bitcoin The death of giants: FTX, Celsius, Three Arrows, LUNA The crypto industry started the year with so much optimism; however, things started going wrong beginning with the war. It upended the global market, and this trickled down to the financial markets, with the crypto industry being impacted by the ripple effect. The market upturn and the de-pegging of TerraUSD (UST) earlier in the year fueled the collapse of Three Arrows Capital (3AC), and at the time, Celsius Network and Voyager Digital also filed for Chapter 11 bankruptcy in the US. As if that weren't enough, the ostensibly healthy crypto exchange behemoth, FTX Derivatives Exchange, declared bankruptcy due to a liquidity crisis caused by a revelation about its unethical business practices. Going into 2023, we should expect further contagion from the FTX implosion. This will not last long or be widespread, and investors will rebuild their trust in exchanges and embrace those who have transparently proven their cash reserves. Mainstream Businesses are Getting Ready to Use Web3 Reality In 2022, more mainstream businesses began to embrace Web 3.0 innovations. Nike, Lacoste, Salvatore Ferragamo, and Budweiser all floated non-fungible token (NFT) collections to connect more with their fans. Most retail outlets have started accepting cryptocurrencies as a means of payment, solidifying their balance sheets with Bitcoin, Ethereum, and stablecoins. Critics believe the claim that blockchain and Web3 innovations are going mainstream is a myth. But we can expect more companies to ride this wave in 2023, based on financial services firms' embrace of decentralized technology, such as JPMorgan's Onyx platform. Web 3 is a trend, and companies will follow it in order to grow, attract more attention, and avoid being left in the dust. Regulators Take Crypto More Seriously Global market regulators like the United States Securities and Exchange Commission (SEC) and the Financial Conduct Authority (FCA) of the United Kingdom are shining their beams more intensely on the industry than before. This is necessary considering the billions of dollars lost from declining prices as well as the capital locked up in bankruptcy proceedings abroad. The call on the SEC for comprehensive regulation is currently being echoed by industry stakeholders and lawmakers. According to a recent by the Financial Times, the FCA has finalized plans to further tighten crypto regulations in the UK and will limit how foreign exchanges operate or ply their trade in the nation. report Globally, regulators will do their best to protect their markets from the mishaps that befell the crypto industry this year, and in 2023, we can expect more of these strict regulations to be introduced. Exciting Future The harsh crypto winter experienced this year is not the end of the crypto ecosystem. It is an avenue to separate the chaff from the wheat. Every day, new protocols are introduced, and in the coming years, we can expect the industry to grow even more than it does now. The world is extremely unstable right now, and each industry, including IT, e-commerce, energy, and so on, is experiencing a crisis in its own way. As a result, businesses must be adaptable and find solutions for all scenarios. But one thing is certain: every crisis causes a quantum leap, and only the strongest survive. Also Published Here

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Lessons From 2022 - The Worst Year for Crypto in History

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