OKLink Released Its Global Crypto Market 2022/Q2 report on July 7th
Beijing, China--(Newsfile Corp. - July 8, 2022) - OKLink released its Global Crypto Market 2022/Q2 report on July 7th and gave a full review of the crypto market in the second quarter.
As pointed out by OKLink in its report, in the context of continuing pressure due to the expectation of global inflation and tightening on liquidity, financial markets have been significantly affected.
In the second quarter of 2022, the price of Bitcoin dropped by 59% compared with what at the end of Q1, and Ethereum also experienced a nearly 70% drop in price. By the end of Q2, the market cap of the crypto market fell from an all-time high of $3.08 trillion to $892.6 billion, which means $2.19 trillion or more than 70% of the market cap have evaporated.
Indicators from OKLink's ChainHub show that by the end of Q2, the crypto market had already entered a deep bear market range. Bitcoin even recorded the longest decline in history for 9 consecutive weeks and Ethereum's market share fell from 18.15% to 14.27%. The exchange rate of ETH/BTC dropped from 0.072 by the end of last quarter to 0.054 as of the end of the second quarter, it appears that Ethereum dropped more than that of Bitcoin.
Ethereum is now supporting and nurturing the most active crypto ecosystem among all public blockchains, yet its on-chain activity has decreased significantly along with the second quarter market decline. Data shows that a total of 457,500 ETH (about 1.092 billion US dollars) were burned in Q2, which is a nearly 40% decrease compared with the 729,700 ETH (about 2.165 billion US dollars) burned in Q1. Technical optimization may still be Ethereum's priority in the following quarters, but currently the focus is only on consensus change rather than ecosystem expansion. This gives Layer 2 projects and other competing public chains an opportunity to grab the market, but the competition will only get more intense.
As to the cause of the market crash in Q2, OKLink's report pointed out that excessive leverage in a market with gradually decreasing liquidity may be an important reason for the collapse. As mainstream crypto assets such as Bitcoin and Ethereum began to fall, market participants chose to sell riskier altcoins.
Crypto ecosystem security is also emphasized in the report. More than 100 security incidents occurred in the second quarter, with the top 10 incidents accumulating a total loss of more than $350 million. Among which, Horizon, the cross-chain bridge between Harmony and Ethereum, was attacked due to the leakage of private keys, and the loss amounted to about 100 million US dollars. It was a security incident involving the most funds lost in the second quarter.
"Inflation, recession, 'hard-landing'......these words are constantly stirring the nerves of the market, the expectations for the future are still not optimistic, we'll just walk and watch," says the head of the Chainhub team.
As one of the earliest founded blockchain companies in China, OKLink has committed to R&D and commercial application of blockchain technology since its establishment in 2013.
OKLink now holds industry leading visual blockchain data processing and analysis tools, integrating big data, AI and other advanced technologies to analyze and process complex and diverse blockchain data, the company has already developed into a world-renowned blockchain data and technology service provider.
For more information, please visit www.oklink.com.
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