The political and economic landscapes have changed significantly over the past year. At the start of 2022, interest rates were near zero, the S&P and crypto markets were at all-time highs, and there was Democratic leadership in Congress. However, portfolios have now dropped by 80%, crypto startups are under more pressure to have solid business models, and large investments may include board oversight. There is also a growing separation of money and state as some countries face cancelation. On the bright side, there is potential for regulatory progress in the United States.

It is unclear whether the current situation in Web3 is a temporary setback or the beginning of a longer downturn. Nonetheless, crypto on a long enough timeline is inevitable, with Bitcoin and Ethereum remaining stable and DeFi set to make significant progress in the coming year. There will also be a focus on infrastructure investments such as code security, decentralized hardware, virtual worlds, custody, protocol governance, and blockchain scalability. NFT speculation and hype may decrease, but NFT technology as an innovation for securing online art, gaming and culture remains clear. This report from Messari covers the year ahead in crypto.