Overview of the crypto market in early 2022
The year 2022 begins with a sign of relatively high volatility, not only in the cryptocurrency sector but also in other economic sectors. Russia’s invasion of Ukraine has pushed prices of some raw materials and energy to new highs. Stock markets are in a similar situation, but in a downward direction. Not only in the field of crypto, but the beginning of 2022 is also a sharp upheaval in the entire world economy.
In the midst of the military conflict in Ukraine, Crypto has successfully demonstrated its importance in the geopolitical struggle. Russia’s proposal to accept crypto as part of its gas payments can be seen as the first sign of a new trend. Bitcoin is becoming a globally neutral medium of exchange in the international market. Crypto adoption will soon become mainstream because it is apolitical and cannot be used as a weapon of influence by the great powers like the US and EU have done to Russia’s fiat money.
Inflation is also a hot topic in recent times, the price increase will continue due to the impact of the covid epidemic and war, causing many investors to use the traditional anti-inflation remedy – gold. However, more and more people are hoarding their wealth during the inflationary era with crypto, which is still in its infancy but is on its way to becoming a digital version of gold. The events of recent weeks only show that such an asset can be very useful in the future.
Check out a few coins in the first 4 months of the year
BTC Price Chart (Source: CoinMarketCap)
Bitcoin kicks off 2022 fresh with a valuation of $46,187. The first 4 months are marked by swings in the price range from $35,000 to $45,000. However, Bitcoin broke out of this zone at the end of March and closed the first quarter at $45,537, down -1.7% from early 2022. The best day of the first quarter for Bitcoin was February 28, when its value increased 14.59% in a day.
ETH Price Chart (Source: CoinMarketCap)
The total number of Ethereum wallet addresses continues to grow at a rapid rate. In the first three months of 2022, the number of Ethereum wallet addresses increased by 8.57% to 78,376,564 addresses. The significant growth in addresses signals an undiminished user interest in interacting with decentralized applications and NFT collections. Additionally, the ETH 2.0 upgrade is attracting the attention of many investors who are accumulating Ethereum as an investment asset for the long term.
WELUPS is the native coin of the Welups blockchain platform launched in mid-2021 and the coin is currently listed on more than 5 major exchanges. Although the price dropped, TVL and the total amount of WELUPS staking are still increasing and the market cap is over 14 million dollars. Although it is a new project and is in a difficult period in the world, the fact that the cash flow into the project continues to increase shows that many investors have seen WELUPS as a good investment opportunity and are actively hoarding WELUPS during this low price period.
With the news that many Welups platform application products will be released in the second quarter of this year, it is forecast that WELUPS will enter a new price increase and may reach the $1 mark in a few years.
The start of the year was marked by a drop in TVL correlating with the price movements of BTC and other cryptocurrencies; however the protocols on the Ethereum network proved to be more stable during this market downturn. The upcoming appearance of promising new DeFi projects like Mooneex or MeiSwap is also a good sign in the DeFi field.
In recent months, TVL has consolidated between $73 billion and $85 billion, showing steady profits. Although the total TVL volume is on a downward trend because of the overall situation, organizations are starting to take an interest in DeFi and want to participate in these activities, as DeFi provides new opportunities for risk management, arbitration and Trading makes the return on DeFi start higher than the traditional bond, stock or forex trading.
Although in the first quarter of 2022, the general situation of the crypto market is still in the direction of a slight decline, crypto has laid a solid foundation in the world economy and has affirmed its advantages. Crypto becoming a trend in the future is certain so invest in crypto projects that still have a lot of potential like Welups today, the crypto market will soon flourish and usersinvestment will soon pay off