The events of 2022 had a significant impact on the cryptocurrency market, causing a 62% drop in total market capitalization to around $835 billion. However, institutional adoption of crypto remains strong and many investors are using this opportunity to strengthen their knowledge and infrastructure for the future. While the market has faced challenges, the risk-adjusted return of cryptocurrencies has performed similarly to US and global stock indices and better than US bonds.
In the future, there may be increased calls for regulatory clarity and better governance in the crypto industry, as well as a focus on tokenization, permissioned decentralized finance, and web3. Non-fungible tokens and stablecoins are also becoming more prominent in the ecosystem. This report discusses these trends and others in more detail, as well as key themes for 2023.