2022 completely came into its own and we invite you to summarize the last six months of the previous year. The growth of bitcoin (BTC) in June decreased by three percent. This is the conclusion reached by the EXMO crypto exchange. In addition to Bitcoin, Ethereum (ETH) also has dropped and lost three percent for the past month. The cryptocurrency exchange EXMO notes that in the case of ETH, the trend towards a decrease has been observed throughout the month.
The situation with Stablecoins is much more volatile. For example, the trading volumes of the largest Stablecoin by market capitalization Tether (USDT) at the end of June recorded a 57% drop to $ 2 trillion. Moreover, the eponymous issuer Tether did not issue a single token in the previous year.
At the same time, Tether's main competitor — Circle (USDC), increased trading volumes by 43% $ 722.9 billion through 2021. The company is expected to be worth $ 4.5 billion as a result of the merger. However, our studies align with scientific literature in showing Circle's sector, the innovation growth sector is expected to underperform amid an inflationary environment going into 2022. In addition, Circle intends to raise $ 1.1 billion in the PIPE. So for now, Stablecoin is stable only in the name.
In general, the market trading volumes of cryptocurrencies in June decreased by 56%. After June, daily trading volumes almost did not rise above $ 100 billion, with the exception of three days, EXMO notes. The revival was due to the purchase of additional bitcoins by MicroStrategy, according to the crypto exchange.
Moreover, this trend is likely to continue because there are no prerequisites for a sharp jump. On the other hand, more and more companies are using cryptocurrency in their day-to-day work. Even those markets that already seemed to be captured by cryptocurrencies, such as bitcoin casinos, continue to develop. More and more bitcoin gambling platforms are starting to use smart contract technology and switch to Ethereum. Perhaps exactly the activity of the crypto casino market was the reason for the growth of ETH in the last half of the year, and the recent decline is just a temporary effect.
As for Ethereum itself and its reputation, everyone is waiting for version 2.0 updating. Ethereum 2.0 developers are preparing to create the first-ever Altair hard fork in history. Unfortunately, the launch has already been postponed several times and now is planned for 2022. Ethereum eleventh hard fork — London, is expected to take place around the same time. The developers want to roll out the updates around the same time so that the validators can update the ETH1 and ETH2 software at once. The London hard fork will contain controversial code changes, including EIP-1559, which is revolutionizing the Ethereum fees market. On the other hand, the Altair update will bring minor but important changes to how ETH 2.0 works. If both updates are successful, the price growth in the cryptocurrency market will be inevitable.
Bitcoin hit back
Ethereum's future looks very bright despite the recent price decrease and what about bitcoin's future. The headliner of cryptocurrencies, like any leader, is receiving the most punches. At the end of June, the Nation Bank of China banned local companies and payment systems from participating in cryptocurrency transactions. After this message, the bitcoin rate for the first time since January fell below $ 30 thousand.
But that's not all, just a couple of weeks ago was another strong blow from China, the province of Anhui decided to close all mining farms on its territory due to a lack of electricity. Three years have been allotted for the implementation of the plan. Elon Musk’s manipulations that we could see at the beginning of the year also do not make bitcoin's reputation much better. As a result, the bitcoin exchange rate in comparison with Ethereum it goes down:
Source: yahoo finance
Summary all above, we can say that for the last half a year on the crypto market nothing changed. Yes, there were incredible price fluctuations, but they did not affect the general trends. Ethereum is still the most promising cryptocurrency, Bitcoin's reputation continues to deteriorate and Stablecoin is absolutely unstable.