Crypto Outlook 2023: What are the emerging themes to watch out for?

livemint.com:

The year 2022 turned out to be a game-changer for the digital asset market. After the market of 2020–2021 experienced exponential growth, the year's peculiar events brought attention to the industry's flaws. They demonstrated the value proposition that digital assets offer market participants compared to traditional finance. The crypto market cap reversed in the final weeks of 2021 and 2022 after reaching an all-time high of $3,009 billion on November 10. On November 21, 2022, the bearish year drove the market capitalization of cryptocurrencies to a 2022 low of $727.58 billion.

The initial Terra Luna collapse’s blow was immense. While the downfalls and bankruptcies that followed it were catastrophic, the fallout from the FTX-Alameda collapse was almost unforeseen. It wasn’t just a downfall but an enormous breach of ecosystem-wide trust.

Prior to the collapse of FTX (FTT-USD) in early to mid-November, many assets in the crypto market were positioning themselves for positive returns at the end of the year. Unfortunately, the FTX collapse and other events led the year 2022 to go down as one of the worst years for crypto investors since the industry began with the arrival of Bitcoin (BTC-USD) in 2009. The year 2022 will be the second worst single-year performance for Bitcoin since 2011 in terms of both year-over-year (-64%) and decline from an all-time high (-74%). However, this bear market cycle is distinct from previous ones. Bitcoin's crypto market dominance increased from 32% during Ethereum's (ETH-USD) early January 2018 peak to over 50% during the 2019 crypto market bottom.

Bitcoin's dominance increased as many ICO altcoins failed to reclaim all-time highs during the previous bull run. Given the magnitude of the