22 December 2023

As we wave goodbye to 2023, let's take a moment to reflect on a year that has been a rollercoaster for the crypto world. This year brought us phenomenal growth in Bitcoin, ground-breaking innovations in blockchain technology and a surge in market enthusiasm that defied all expectations. From the meteoric rise of Solana to the innovative strides in modular blockchains, 2023 has been a year of significant milestones and exciting developments.

In this special edition of Cryptogram, we'll revisit the key moments and trends that defined 2023. But before that, let's look at the top stories of this week

Top-3 stories of the week:

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The newsletter is put together by Giottus Crypto Platform. You can read all the previous issues of Cryptogram here.

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WEEKLY MACROS

• Total crypto market cap - $1.66 trillion - UP 2.5%

• Bitcoin price - $44,062 - UP 2.7%

• The dollar index (DXY) - 101.87 - DOWN 0.1%

• Bitcoin Dominance - 53.15% - Unchanged

• Crypto Fear and Greed Index - 74 - the market is in greed

THE HOT TAKE

🌟🚀 Crypto in 2023: Dull year ended on a wild ride!! 🌟💰

The happy thing about 2023 despite most if it being pretty dull for crypto markets (except for the crypto-bros dramas) is that when we look back at the year, we will remember the last couple of months when things turned happy and wild. With macro-economic factors, regulatory stability and ETF positivity driving the year-end bull run, this year has been an absolute rollercoaster, full of twists, turns and breath-taking moments.

This year has also reshaped our view of cryptocurrencies and blockchain technology. Let’s take a look at the year that went by!

1. Bitcoin's Bull Run 🐂💹

Phenomenal Growth: Bitcoin has been the star of the show, boasting a Year-To-Date (YTD) gain of a massive 163%. This outperformance has left traditional markets like Nasdaq (44%), S&P 500 (18%), and Gold (12%) in its dust.

Steadiness in Volatility: Remarkably, 2023 was the least volatile year for Bitcoin since 2016. Less than 15% of the trading days witnessed price fluctuations of 3% or more. This stability is a testament to Bitcoin's growing maturity and acceptance.

2. SOL and LINK: The Dark Horses 🐎🌌

Solana's Stellar Surge: SOL was the definitive outlier, achieving an eye-popping 567% gain YTD. This performance wasn't just good, it was extraordinary.

Chainlink’s Robust Rise: Chainlink gained significant traction, especially with the growing popularity of the Real World Asset (RWA) narrative. This surge mirrors its 2019 performance, where it outdid Bitcoin. Among the top 20 crypto assets, SOL and LINK were the only two to outperform BTC.

3.  Spot Volume: Peaks and Valleys 🏔️📉

BTC and ETH Volume Trends: The trading volumes for Bitcoin and Ethereum were a mixed bag - sometimes high, sometimes low, but always interesting. The first half of the year was particularly volatile, with spikes in trading volumes following major news events.

The Lull and Surge: Post May, there was a noticeable dip in trading activity. However, as the year progressed, enthusiasm around ETFs and a growing appetite for Bitcoin exposure led to a steady uptrend in volumes. This is a positive signal for the health and interest in the crypto markets.

4. The Blockchain Ecosystem: A Year of Innovation 🌍🔧

Ordinals' Explosive Growth: Ordinals took the Bitcoin world by storm, with inscriptions ballooning from a mere 4 to over 50 million. This innovation has opened up a new world of digital artifacts (akin to NFTs) on the Bitcoin blockchain.

New Entrants: Base and Friend.Tech: Crypto exchanges launching their own tokens isn't new, but Coinbase's approach with Base, an L2 chain sans its own token, was a fresh take. The buzz really kicked off with Friend.Tech, a SocialFi app allowing users to trade shares of their favourite crypto influencers.

Modular Blockchains’ Rise: Modular blockchains have been a game-changer, offering enhanced transaction speed and scalability. Celestia, with its Data Availability Sampling, became a fan favourite. Its mainnet launch on October 31 saw its token, $TIA, skyrocket by 483%.

5. Bitcoin's Robust Long-Term Outlook 💼📈

Inflation and Hard Cap Benefits: As governments continue to print money, Bitcoin's hard-capped supply at 21 million becomes increasingly attractive. With the upcoming halving in April 2024, this scarcity factor is only set to intensify.

MVRV Graph Insights: The MVRV ratio still hovers around 1.28, suggesting that even after a 150% rally this year, Bitcoin remains a solid buy for those looking to accumulate.

6. The Era of Stubborn Holders 🛡️💎

Despite the impressive returns this year, Bitcoin holders have shown a strong conviction to hold onto their assets. The percentage of long-term holders has now surpassed 70%, a sign of unwavering faith in Bitcoin's future.

7. Miners Rejoicing: A Lucrative Year 🎄💰

Fee-Based Windfall: This weekend was a bonanza for Bitcoin miners, with transaction fees eclipsing the 6.25 BTC block subsidy. This shift towards a fee-based revenue model is a significant development for the future economics of Bitcoin mining.

Marathon Digital Holdings: A notable miner, Marathon Digital Holdings, saw its market cap triple since November and is gearing up for a massive $179 million investment in new mining infrastructure.

What a Year! And what a year the next one could be, with the impending Bitcoin Halving!

Here's to keeping the crypto flame burning bright in 2024! Stay curious, stay invested, and let's ride the crypto wave together!

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If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

Disclaimer: Crypto-asset or VDA investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.