- The global cryptocurrency market cap surged to $2.12 trillion, a 151% increase from 2022.
- The introduction of spot ETFs in the U.S. has boosted institutional adoption of digital assets.
- MicroStrategy shares rose by 325% in the past year, highlighting its growth in the blockchain space.
The cryptocurrency market has recovered significantly since the FTX exchange collapse in 2022. A recent report by Canaccord revealed the crypto industry has grown over the past year, driven by increased global adoption of digital assets.
On November 11, 2022, FTX filed for bankruptcy Chapter 11 following a report revealing fraudulent balance sheet computations. Afterward, the exchange experienced massive asset liquidation, ushering in the crypto winter and the worst bear market in history.
Market commentators led by Joseph Vafi explained that the crypto industry has progressed from a post-FTX consolidation and recovery phase over the past year. They added that the current phase centers on growth, expanding business models, and total addressable markets (TAM).
“With digital assets hovering near all-time highs, some incremental logjam beak on the regulatory front, good business execution by GLXY and some rerate up on a sum-of-the-parts (SOTP) valuation, we are boosting our price target,” the analyst noted .
The global cryptocurrency market cap is $2.12 trillion, a 151% increase from 2022’s figure of $845 billion. Meanwhile, the introduction of spot exchange-traded funds (ETFs) in the U.S. has further boosted the sentiment around digital assets. Furthermore, it has triggered institutional adoption of digital assets by prominent financial entities, including hedge funds.
Besides, analysts believe the approval of Bitcoin (BTC) and Ether (ETH) spot ETFs will spark growth of portfolio allocations within the sector. Spot ether ETFs began trading in the U.S. on July 23, six months after the Bitcoin funds. Hong Kong also approved the trading of ETH ETFs in April.
Vafi commended Michael Saylor’s MicroStrategy (MSTR) for its growth within the blockchain space, particularly “its evolution into a Bitcoin development company.” Over the past year, MSTR shares have risen by 325%, outperforming most asset classes.
However, the crypto market has faced challenges recently due to several regulatory setbacks and geopolitical tensions.
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