2023 Market Recap

By the end of 2022, the insolvencies of multiple lenders had contracted credit within the crypto ecosystem, while FTX’s fraud shattered outsiders’ confidence in crypto as an asset class. It’s unsurprising that market activity continued to dwindle for most of the year relative to the exuberance of 2021. However, despite the tepid trading and deal-making atmospheres, cryptocurrencies performed quite well from a price perspective, with crypto market capitalization doubling over the course of the year.

This piece analyzes cryptocurrency as an asset class through the venues on which investors seek exposure. Specifically, we walk through volumes and pair denominations for centralized crypto exchanges (CEXs), emerging decentralized exchanges (DEXs), derivatives venues and private markets such as venture capital, private equity and M&A.