CipherTrace Report Reveals Almost 50% Of Total Crypto Market Cap Lost By 2022
The total market capitalization (TMC) of crypto assets lost almost half of its value between January 2022 and September 2022, according to a recent report by crypto intelligence company CipherTrace.
However, the report noted that TMC grew over 20% between the third and fourth quarters of 2022.
According to the figures, crypto TMC increased to $1.05 billion in October 2022 from $871 million recorded in July 2022. Despite this significant growth, October’s $1.05 billion still marked a 52% drop from January’s $2.205 billion 2022 – reflecting the impact of the coldest winter in crypto history.
The report also notes that the size of the market cap at the end of Q3 2022 indicated a decline of 63% from the market cap’s all-time high of $2.83 billion – recorded on November 14, 2021.
Defi and NFTs
Total Value Locked (TVL) volume at the end of the third quarter of 2022 was around $54 billion – barely showing any difference from the end of the second quarter. However, the second quarter started with TVL at $165 billion – indicating a 67% drop in TVL volume at the end of the third quarter.
From January 2022 to September 2022, Ethereum (ETH) continued to account for the most important TVL volume. Its annual high was recorded in the first quarter at 79.9%, but fell to 57.12% in the third quarter.
Total non-fungible token (NFT) trading volumes also reflected the effects of the bear market through 2022. The combined trading volume of the top eight chains fell to $2.3 billion in the third quarter from $13.9 billion recorded in the first – marking a 83% decrease.
Hacking, theft and fraud
The report also examines the significant exploits that took place between January 2022 and September 2022. The figures indicate that the cryptosphere lost $383 million to just seven criminal episodes.
Nomad recorded the biggest loss of over $190 million on a bridge exploit in January 2022 – while Wintermute saw the second biggest loss, losing $160 million on a hack. Crema Finance ranked third after losing over $8 million to a flash loan attack.
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