The cryptocurrency market is still recovering from the fallout from the FTX explosion last year. The market value has decreased significantly, NFT trading has plummeted, and venture capital deals have slowed.
According to a Bloomberg report, bitcoin BTC/USD It has recovered 60% this year, trading around $27,000, but remains below the all-time high of $69,000 set in November 2021. The $3 trillion market is now down to $1 trillion.
Trading volumes have dried up and NFTs, once a hot commodity, have lost their appeal. According to dappGambl, 95% of the more than 73,000 NFT collections are virtually worthless. The weekly traded value of NFTs now stands at $80 million, just 3% of the peak reached in August 2021.
Investments in cryptocurrency and blockchain projects have also decreased. Venture capital deals have dropped to about $7.3 billion this year, a quarter of the full-year total in 2021 and 2022, according to Pitchbook data. Job losses in the industry have been significant, with employment falling at a rate of more than 5%, according to Revelio Labs.
Nico Corderochief investment officer of crypto hedge fund Strix Leviathan He said: "Revenue is minimal simply because of market conditions. You are not attracting new investors because no one is investing in the space. Players in the space are in survival mode: maintaining operations for as long as possible." "Capital needs to start returning to space."
In the wake of the FTX collapse, legal proceedings against crypto companies like Global Genesis, Celsius Network, Digital Traveler, Capital of three arrowsand BlockFi Inc. have been increasing. Coinbase Global Inc. CURRENCY is fighting the SEC accusations, and binance is embroiled in enforcement actions by the Commodity Futures Trading Commission and the SEC.
Image via Shutterstock
Designed by
Neuro BenzingaEdited by
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga ecosystem, including native data, APIs, and more, to create rich, timely stories for you.
Learn more.
