Summary
As 2022 draws to a close, it has been a particularly challenging year for many players in the cryptocurrency and blockchain space. While the crypto winter is here, the seasonal shift in the trading market has not dampened the promotion and development of blockchain technology. While some strident voices like to focus on short-term developments, there is no doubt that the cryptocurrency industry has made great strides since 2021.
Crypto markets entered 2022 struggling to hold onto all-time highs from late 2021 until Terra collapsed in May, dragging crypto prices down in the process. Market confidence remains low following the collapse of hedge fund Three Arrows Capital and crypto lender Celsius Network.
Then in November, Coindesk reported that FTX had a liquidity crisis, showing that FTX had lax financial controls, suspicious loan sources, and executives diverting customer deposits for personal use, which triggered a sell-off and eventually led to FTX filing for bankruptcy. This time, the crisis led to the bankruptcy of cryptocurrency lenders BlockFi and Genesis Global Capital.
Background
Granted, over a 12-month period, the cryptocurrency market did retreat from its all-time highs. Still, Chainalysis noted in its 2022 Crypto Adoption Index blog post: “It is important to note that global adoption remains well above 2019’s pre-bull run levels.”
The total locked value (TVL) of decentralized finance (DeFi) fell from a high of nearly $190 billion to $39 billion, with the Terra crash alone accounting for about $75 billion of the single loss. However, this round of value loss may be mainly due to the decline in cryptocurrency prices, so DeFi is still expected to see light when the market recovers.
Non-fungible token (NFT) trading activity has also decreased, with trading volumes falling back to 2021 levels. NFT trading reached a high point in April and May 2022, and the media was quick to note the stark contrast between the extremely active trading volume in those weeks and the relatively cool trading volume before the end of the year. However, it can be said that strong use cases and untapped applications related to NFTs still exist. If these come to fruition, NFT adoption is likely to continue to grow.
Highlights
Even during this difficult time of the year, some sunshine has come through. In an event known as “The Merge,” Ethereum finally made the switch from a Proof-of-Work validation mechanism to a Proof-of-Stake validation mechanism. The transition went smoothly, ushering in a new era of greener transactions and the promise of lower network fees.
Despite the ups and downs of NFT trading activity, NFT adoption seems to continue to grow, especially in the social field. Twitter allows users to upload NFTs as personal avatars, while Facebook and Instagram allow users to post and share NFTs. As the social platform Reddit's NFT series quickly became one of the most popular series to date, millions of Reddit users have registered NFT wallets and minted NFT avatars.
In terms of regulation, the EU has passed the Cryptocurrency Asset Market Regulation Act, which provides a clear reference for EU cryptocurrency regulation. Although the bill will not take effect until 2024, it provides centralized trading platforms with more guidance on custody requirements, asset marketing, and how to assess and communicate risks to users. Regulation that protects the interests of investors has more benefits than disadvantages for the industry.
India has launched a pilot of a central bank digital currency (CBDC) in the retail sector in four cities, and the pilot program will be expanded to nine more cities in the future. This move is expected to improve the lives of more than 1 billion people, many of whom do not even have bank accounts. For this reason, 11 countries have launched CBDC plans, and more than 100 countries are at some stage of launching CBDC plans.
Best of all, despite the market noise, crypto teams continue to build. To create a better Web3 infrastructure, more L1 protocols are constantly being launched. Promising new technologies such as zero-knowledge (zk) proofs are making progress. In 2022, BNB Chain launched the zero-knowledge extension technology zkBNB test network, and many other projects also plan to launch their own zero-knowledge Ethereum Virtual Machine (zk-EVM) next year. These initiatives will significantly improve scalability and interoperability across blockchains. Huge technological advancements tend to occur during economic downturns, so it wouldn’t be surprising if blockchain technology continues to develop regardless of market sentiment.
Survive this crypto winter with Binance Academy
What better time to brush up on blockchain knowledge than in winter? Since we launched the first free cryptocurrency education course in November last year, 200,000 people have devoted their energy to blockchain knowledge learning and personal growth, completing a total of 8.3 years of blockchain course content (an average of 22 minutes per user).
By January of this year, we will provide more than 120 minutes of self-guided video education for all users to learn the basics of blockchain, Web3, and transactions. Any user with a Binance account can receive a free NFT certificate after completing the entire series of 6 beginner training courses.
In 2022, our website has received 26 million unique visitors, and our videos on YouTube and Binance Live have received 25 million views. In addition, we have expanded our knowledge base, which now includes nearly 1,000 articles and glossary entries. We have distributed $7.3 million worth of rewards to more than 6.5 million visitors through the Learn to Earn Coins campaign, enabling them to gain in-depth knowledge of the key elements that make different blockchains successful.
Binance Academy has established many partnerships around the world and provides cryptocurrency and web3 education to 75 universities in more than 20 countries and regions around the world. More than 5,500 students and guests have participated in these educational activities, and we have received nearly a thousand applications from individuals from more than 35 countries (and growing!) who are very interested in the cryptocurrency field and hope to become student ambassadors.
Launching in Q4 2022, our Student Ambassador Program aims to invest in the next generation of blockchain industry leaders. Our selected student ambassadors will help organize and conduct cryptocurrency education and awareness events on campus, promote interaction and knowledge sharing opportunities among the blockchain community, and have access to the Binance Academy network and possibly even internship opportunities!
Additionally, we are deepening our collaboration at the national level with countries such as Kazakhstan, where we will provide teaching materials and support to develop and implement basic educational programs in blockchain and compliance for universities across the country.
What can we expect from Binance Academy in 2023?
We look forward to delivering more knowledge about blockchain to more users in 2023. Our partnerships will continue to expand as we work with more schools, governments, and institutions to provide in-person training, hackathons, and workshops.
We have currently established partnerships with some of the world's leading education service providers to provide certified blockchain education to users who want to work in the blockchain industry.
And for those who just want to continue exploring the fascinating new blockchain technology, we will also expand our free online course content in 2023, aiming to provide more than 20 hours of intermediate and advanced video education through our course products. Through these initiatives, we hope to ensure that everyone can get free education so that they can benefit from the decentralized future driven by blockchain technology.
2023 has begun, and we will persevere as always!
in conclusion
Looking back at 2022, it is clear that the blockchain ecosystem has experienced tremendous growth and development. Despite facing a fair number of setbacks, the cryptocurrency community has persevered and will ultimately emerge stronger and more experienced. It can also be said that every market cycle will eliminate market participants whose business models are unsustainable, and perhaps the cryptocurrency industry is no exception.
So while the cryptocurrency market has certainly been volatile recently, we can probably remain optimistic about the industry’s prospects as new cryptocurrency protocols continue to be developed and existing protocols become increasingly mainstream. Regardless, it’s always important to continue to learn about the world and technology around you throughout your life (regardless of market conditions!), so keep learning about this rapidly evolving blockchain industry! We eagerly look forward to the years ahead and what the blockchain industry has in store for us.
