Crypto markets had a bad year in 2022. FTX, Terra, and Celsius Network suddenly collapsed in the past few months, causing steep bear markets for investors and crypto users. The sudden collapse of FTX resulted in the loss of savings for more than 1 million investors.
The price growth rate of bitcoin, the leading cryptocurrency, and other cryptos slightly decreased by the end of 2022. The crypto market is trading at reasonable growth rates as CoinMarketCap reports despite an imminent global recession due to the Federal Reserve’s rate hikes.
Meanwhile, the bitcoin price had fallen by 1.60% over the last week, trading at $16,557.
Worst cryptocurrency crashes in 2022
Celsius froze user withdrawals in June 2022 in accordance with crypto market terms and conditions.
Several custody programs and withholding account holders may not support assets locked up in these filings, Celsius said.
Crypto investors and users are wary of investing in cryptocurrency after the collapse of FTX badly affected the market. The recent collapse of FTX left investors with a lot of doubt and fear regarding cryptocurrency.
A sudden collapse in the crypto market took place on November 11 when FTX, the world’s second-largest cryptocurrency exchange, filed for bankruptcy. FTX managed to sell its assets for $65 million.
Axie Infinity and The Sandbox suffer losses
There was a slowdown in metaverse adoption in 2022 due to cyber attacks, frauds, and bankruptcies on the crypto market, affecting the popular NFT-based online game Axie Infinity (AXS) as well as the Ethereum-based metaverse gaming platform Sandbox (SAND).
An Ethereum main net-based monster battlefield game called Axie Infinity collapsed in March 2022 after the Lazarus group hacked $622 million worth of crypto assets in the game. Users of Axie Infinity reported that they were experiencing low production values in 2022 due to cyber attacks.
With a trading volume of $91,401,574, The Sandbox has lost 1.5% in the past 24 hours. At the time of the crypto explosion in 2021, The Sandbox reached an all-time high of $8.38. The price began to decline slowly after a few months.