Abstract

2022 is coming to an end, and it has been an especially challenging year for many players in the cryptocurrency and blockchain space. Although the cryptocurrency winter is approaching, the seasonal changes in the trading market have not weakened the promotion and development of blockchain technology. While some strident voices like to focus on short-term developments, there is no doubt that the cryptocurrency industry has come a long way since 2021.

Entering 2022, the cryptocurrency market struggled to maintain the all-time highs at the end of 2021 until the Terra crash in May. In the process dragging down cryptocurrency prices all the way down. Market confidence remains low due to the collapse of hedge fund Three Arrows Capital and cryptocurrency lender Celsius Network.

Subsequently in November, Coindesk reported that FTX had a liquidity crisis. The report showed that FTX had lax financial controls, suspicious loan sources, and Issues such as executives diverting customer deposits for personal use triggered a sell-off that ultimately led to FTX filing for bankruptcy. This time the crisis led to the bankruptcy of cryptocurrency lenders BlockFi and Genesis Global Capital.

Background introduction

It is true that over the course of 12 months, the cryptocurrency market has indeed retreated from its all-time highs. Nonetheless, Chainalysis noted in its 2022 Crypto Adoption Index blog post: “It is important to note that global adoption remains well above pre-bull run levels in 2019.”

Decentralized Finance (DeFi)’s total value locked (TVL) fell from a high of nearly $190 billion to $39 billion, with the Terra crash alone accounting for Among them, about 75 billion US dollars were lost in a single transaction. However, this round of value loss may be mainly due to the decline in cryptocurrency prices, so when the market recovers, DeFi is still expected to see the light of day.

Non-fungible token (NFT) trading activity also declined, with volume falling back to 2021 levels. In April and May 2022, NFT trading volume reached a high point, and the media quickly discovered the sharp contrast between the unusually active trading volume in those weeks and the relatively cold trading volume before the end of the year. However, it’s fair to say that powerful use cases and untapped applications related to NFTs still exist. If these come true, NFT adoption is still likely to continue to grow.

Highlights

Even during this difficult time of year, there are Some sunlight shines in. In an event known as “The Merge,” Ethereum finally achieved the transition from a Proof-of-Work verification mechanism to a Proof-of-Stake verification mechanism. The transition has gone smoothly, ushering in a new era of greener transactions and the promise of lower network fees.

Despite the ups and downs in NFT trading activity, NFT adoption appears to be continuing to grow, especially in the social space. Twitter allows users to upload NFTs as personal avatars, while Facebook and Instagram allow users to post and share NFTs. As social platform Reddit's NFT series quickly became one of the hottest series to date, millions of Reddit users have registered NFT wallets and minted NFT avatars.

In terms of supervision, the European Union passed the "Cryptocurrency Asset Market Supervision Act", which provides a clear reference for the EU's cryptocurrency supervision. . Although the bill will not take effect until 2024, it provides centralized exchanges with more guidance on custody requirements, marketing of assets, and how to assess and communicate risks to users. Regulation that protects investor interests would do more good than harm to the industry.

India has launched a central bank digital currency (CBDC) pilot in the retail sector in 4 cities, and the pilot plan will be expanded to additional areas in the future. 9 cities. The move is expected to improve the lives of more than 1 billion people, many of whom don't even have bank accounts. For this reason, 11 countries have launched CBDC plans, while more than 100 countries are at some stage of launching CBDC plans.

Most importantly, despite the market noise, the cryptocurrency team continues to build. To create a better Web3 infrastructure, more L1 protocols are constantly being launched. Promising new technologies such as zero-knowledge (zk) proofs are making progress. In 2022, BNB Chain launched the zero-knowledge extension technology zkBNB test network, and many other projects also plan to launch their own zero-knowledge Ethereum Virtual Machine (zk-EVM) next year. These initiatives will significantly improve scalability and interoperability across blockchains. Huge technological advancements tend to occur during economic downturns, so it wouldn’t be surprising if blockchain technology continues to develop regardless of market sentiment.

Visit this cryptocurrency winter with Binance Academy

And When is a better time to brush up on blockchain knowledge than winter? Since last November, we launched the first free cryptocurrency education course. So far, 200,000 people have invested in blockchain knowledge learning and personal growth, completing a total of 8.3 years of blockchain training. Course content (average 22 minutes per user).

By January this year, we will provide more than 120 minutes of independent video education for all users to learn blockchain, Web3 and The basics of trading. Any user with a Binance account can receive a free NFT certificate after completing the entire series of 6 beginner training courses.

Our website has received 26 million unique visitors in 2022, and our video views on YouTube and Binance Live Already reached 25 million times. In addition, we have expanded our knowledge base, which now includes nearly 1,000 articles and glossary entries. We’ve distributed $7.3 million worth of rewards to more than 6.5 million visitors through our Learn to Earn campaign, giving them a deep understanding of what makes different blockchains successful.

Binance Academy has established many partnerships around the world and serves 75 universities in more than 20 countries and regions around the world. Providing cryptocurrency and web3 education. More than 5,500 students and guests participated in these educational events, and we received nearly a thousand applications from individuals from more than 35 countries (and this number is growing!) who are interested in the cryptocurrency space and want to become student ambassadors.

Our student ambassador program launches in Q4 2022 to invest in the next generation of blockchain industry leaders. Our selected student ambassadors will help organize and run cryptocurrency education and science events on campus, facilitate interaction and knowledge sharing opportunities among the blockchain community, and also have access to the Binance Academy network and may even be able to land an internship!

In addition, we have deepened our cooperation at the national level with countries such as Kazakhstan, and we will provide teaching materials and support to Its universities across the country develop and implement essential education programs in blockchain and compliance.

What initiatives are worth looking forward to at Binance Academy in 2023?

In 2023, we look forward to delivering more knowledge about blockchain to more users. Our partnerships will continue to expand as we work with more schools, governments and institutions to deliver in-person training, hackathons and workshops.

We have currently established partnerships with some of the world's leading education service providers to provide opportunities for those who want to work in the blockchain Provides certified blockchain education to users in the industry.

And for those users who just want to continue to explore the fascinating new blockchain technology, we will also introduce it in 2023 An expansion of our free online course content designed to provide over 20 hours of intermediate to advanced video education through our course products. Through these initiatives, we hope to ensure that everyone has access to free education so they can benefit from a decentralized future powered by blockchain technology.

2023 has begun, and we will persist as always!

Conclusion

Looking back on 2022, it is clear that the blockchain ecosystem has experienced tremendous growth and development. Despite facing its fair share of setbacks, the cryptocurrency community has persevered and will ultimately emerge stronger and more experienced. It can also be said that every market cycle will eliminate market participants with unsustainable business models, and perhaps the cryptocurrency industry is no exception.

So, while the cryptocurrency market has indeed been volatile in the recent past, as new cryptocurrency protocols continue to be developed and existing protocols become increasingly mainstream , we may be able to remain optimistic about the prospects of this industry. Regardless, it’s always important to have ongoing lifelong learning about the world and technology around you (regardless of market conditions!), so keep learning about this rapidly evolving blockchain industry! We are eagerly looking forward to the years ahead and eager to see the next chapter of development in the blockchain industry.