How the crypto market landscape is evolving

2023 has been an incredible year for digital assets, with Bitcoin up over 172%, a correction of less than 20%, and net capital inflows into BTC, ETH, and stablecoins.

The market has broken through several important technologies and on-chain pricing models this year, with October being a major pivot point for institutional capital flows.

Currently, the supply of Bitcoin held by long-term holders is almost at an all-time high, and the vast majority of Bitcoin is now profitable.

Major changes are occurring in the market structure, such as Tether re-establishing stablecoin dominance, CME futures disrupting Binance, and the significant growth of the options market.

In our final installment of the year, we’ll take a quick look at the changes happening on-chain this year. We’ll explore how the Bitcoin, Ethereum, derivatives, and stablecoin landscape evolves in 2023, and how this sets the stage for an exciting future.

2023 has been an extraordinary year for digital assets, with Bitcoin’s market cap increasing by a peak of 172%. The rest of the digital asset ecosystem also had a strong year, with Ethereum and the broader altcoin space growing by more than 90% in market capitalization.

This highlights Bitcoin’s rising dominance, which is often seen as a time when markets are recovering from a prolonged bear market such as 2021-22. Ethereum, in particular, has had a somewhat slow start, with the ETH/BTC ratio falling to multi-year lows around 0.052, despite the successful launch of the Shanghai update and the development of the L2 ecosystem.

While digital assets have significantly outperformed traditional assets such as stocks, bonds and precious metals throughout the year, the rebound since late October accounted for most of the gains. First it broke the psychologically important price level of $30,000, as well as a number of important pricing levels. #BTC #ETH