The crypto market this year has seen a more favorable environment compared to the previous year, with its cumulative value doubling. Major FUDs (fear, uncertainty, and doubt) have diminished, and despite legal issues involving Binance and Coinbase, the market has been fortunate not to witness a series of collapses as in 2022.
Current market trends are not diverging from previous cycles, which is positive news. The graph reveals the ICO boom, the rise of DeFi, and BlackRock’s entry into cryptocurrency. The June announcement signaled a change, leading to significant increases in Bitcoin and altcoins.
The crypto market is accustomed to periods of intense speculative frenzy followed by sharp declines of 70-90%, and then rapid recoveries. Since January, the cumulative value of cryptocurrencies has surged from $840 billion to over $1.6 trillion.
Most gains occurred in the first and last quarters of the year. The market began its ascent in January, as the influence of centralized crypto lenders and trading firms weakened, a trend characterized by the 2022 market. The FTX collapse was the tipping point, and about two months later, fear in the market began to subside, with appetite increasing.
In March, for the first time since the Terra collapse, BTC approached $30,000 during a banking crisis. Five banks failed due to rapid interest rate hikes, forcing them to sell long-term bonds at a discount to meet customer withdrawals. Mid-year, BTC moved sideways around $25,000 – $30,000, while a summer rally for new memecoins began.
Later, in October, the market gained significant momentum, and we all experienced the developments firsthand. Below, you can see the price performance of popular altcoins during relevant periods. Smart contract networks and DeFi coins competed throughout the year. SOL Coin particularly made a mark in the last quarter with speculative movements related to GSOL premium.