Thanks for the months long After the shuffle, the crypto market will experience one of the sharpest drawdowns in its history in 2022. But people are starting to question when (if?) the major cryptocurrencies will recover.
The global cryptocurrency market capitalization, which accounts for the total value of all crypto assets, including stablecoins and tokens, has fallen about 64% so far this year to about $797 billion from $2.2 trillion, according to CoinMarketCap. data. The two largest cryptocurrencies by market capitalization, bitcoin with etherdown 64% and 67%, respectively, over the same time period.
With more than half of their value lost, one could argue that these cryptocurrencies are irrecoverable.But that’s not the case when you zoom out and look at the overall picture so bad For bitcoin and ethereum despite what happened this year.
Let’s see how major cryptocurrency and global events this year have affected the two largest cryptocurrencies.
Image credits: Coinbase (opens in new window)
Image credits: Coinbase, (opens in new window) ether scan (opens in new window)
Data shows that when the Terra/LUNA ecosystem collapsed in early May, more than $1 billion in total cryptocurrency market capitalization was wiped out, from about $1.8 trillion to about $820 billion in about six weeks. Comparing that again with the largest cryptocurrencies, bitcoin and ether have both lost more than 50% in that time.
Focusing solely on that event, the drop looked (and, to be fair, was) brutal.
Since that crash, however, bitcoin and ether have remained in the same range, even after one of the largest cryptocurrency exchanges, FTX, collapsed last month archive Chapter 11 bankruptcy.
