Review of events in 2022: 3 pros and 3 cons

In the past year, the crypto space has experienced many upheavals, including ups and downs. We invite you to remember together the most remarkable of them.
At the beginning of 2022, the market capitalization of cryptocurrencies, as well as the NFT market, reached incredible heights (although not record ones). The total value of cryptocurrencies has reached $2.5 trillion, with NFTs peaking after exponential growth in 2021. NFT trading volume has been declining throughout the year, especially on the OpenSea trading platform.
As usual in bull markets, new projects attracted a lot of attention, leading to aggressive speculative investments. A striking example is the Terra ecosystem. Retail and venture capital investors invested heavily in what was quickly becoming a scam. All this took place against the backdrop of a strong macroeconomic environment; The abundance of highly profitable offers gave many the impression that this would always be the case.
Content
1 The main victories of cryptocurrencies in 2022
      1.1 Ethereum Merger
      1.2 The role of cryptocurrencies in political events
      1.3 Integration of tech giants
2 Major Cryptocurrency Failures of 2022
      2.1 Decrease in market capitalization
      2.2 Insider trading
      2.3 Tornado Cash and regulatory adjustments
The main victories of cryptocurrencies in 2022
Ethereum Merger
In September, we all witnessed a historic event: the Ethereum merger (The Merge). The Ethereum blockchain has successfully transitioned from a Proof-of-Work consensus algorithm to a Proof-of-Stake algorithm. Since miners are no longer required to validate transactions, the network's energy consumption has been reduced, now operating as a much greener chain.
Since the merger, interest seems to have shifted from layer 1 blockchains (Cardano, Solana, Avalanche), to layer 2 solutions for scaling (Arbitrum, Optimism). At the same time, there is a general race to reduce online transaction fees, centralized exchange trading fees (many platforms have zeroed out fees on spot trading pairs), and more recently, increased royalties for NFT trading platforms.
The role of cryptocurrencies in political events
Global conflicts throughout the year provided an opportunity for cryptocurrency to demonstrate the power of cross-border value transfer.
Political conflict occurred in Canada. Hundreds of truck drivers protested Covid vaccination mandates. Protests began to dominate the streets of the capital, sparked by a $10 million GoFundMe campaign whose website was eventually shut down citing violations of its terms of service. Backers then turned to cryptocurrency, raising nearly $900,000 worth of BTC to further fund their efforts. This was partly due to regulatory action taken by the Canadian government during the year.
In Russia, in 2023, it is planned to introduce cross-border payments in cryptocurrency for business, an experimental legal regime, and a national crypto exchange.
Integration of tech giants
Large brands, and fashion giants in particular, are using Web3 as a means of expanding their influence and attracting customers. So, Tiffany & Co. have officially entered this space with the release of 250 limited edition gold pendants. They were intended exclusively for owners of the popular CryptoPunks NFTs.
François-Henri Pinault, president of Kering (Gucci's parent company), also said that Kering has a dedicated team dedicated to expanding Gucci and BALENCIAGA's presence in Web3 and the metaverse.
The main cryptocurrency failures of 2022
Decrease in market capitalization
By the end of the second quarter, a 40% decline in cryptocurrency market capitalization had reduced the total value by approximately $1 trillion. During this period it also became apparent that some central finance institutions were overburdened with debt. Substantial loans were made, many of which were unsecured.
As yields fell from the inflated 20 percent on Terra's UST stablecoin (not to be confused with USDT) to below-inflation rates, the coin began to decline in value. The cryptosphere's trust in algorithmic stablecoins dropped significantly and has not recovered since then. Three Arrows Capital lost a huge amount of capital in the sell-off that followed Terra's failure. Yields fell further.
Insider trading
Ishan Wahi, a former Coinbase employee, was charged with insider trading and, along with his relatives, profited more than $1.5 million by using confidential information about the listing of new coins on the platform. He bought tokens before they appeared on Coinbase and sold immediately after listing, when the price increased significantly due to the wave of interest.
Tornado Cash and regulatory adjustments
The crypto-mixer Tornado Cash came under US sanctions, which saw it as a threat to national security, used by foreign countries to launder stolen funds. Many lawsuits have been filed claiming otherwise, and the legal battle is still ongoing, while one lead developer, Alexey Pertsev, has been detained.