Bitcoin 2022 Review: Price dropped 65%, on-chain activity decreased

In 2022, affected by the global liquidity tightening, Bitcoin ended the bull market of the previous two years and entered a fluctuating downward bear market. In addition to the big dump in price, Bitcoin underwent profound changes in multiple aspects. This article comprehensively reviews the main changes in Bitcoin in 2022 from the perspectives of the trading market, on-chain data, chip structure, mining, and applications.

1. Trading Market

• Bitcoin price dropped 65.09% throughout the year, falling from $47,700 to $16,600.
• The exchange's Bitcoin supply has decreased by 533,700 coins, with a drop of 20.20%
• After mid-October, the market leverage ratio dropped from a high of 40.47% to around 28%.
• Institutional holdings dropped by 4.54%, and the OTC premium rate fell to -44%.

2. on-chain data

• The monthly average active addresses is 27.82 million, a year-on-year drop of 7.67%
• Added 141 million addresses, a year-on-year decrease of 9.50%
• Total trading volume of 88.99 million times for the year, a year-on-year decrease of 4.13%
• Total transaction volume of 1.256 billion BTC, a year-on-year increase of 36.37%
• Total transaction fees of 137 million USD, averaging 1.53 USD per transaction.

3. Chip and Address Structure

• The average proportion of profit chips is 60.50%, showing a downward trend throughout the year.
• The holding ratio of the top 100 addresses by balance first rises and then drops.
• The number of small addresses has increased significantly, with a notable rise in addresses holding less than 10 BTC.
• The proportion of chips held for a 1-2 year period has grown the most.

4. Mining

• Average daily hash rate 218.5 EH/s, annual growth 11.21%
• The unit computing power revenue dropped from 0.25 USD to 0.06 USD, a fall of 76%
• The average miner position index is -0.52, indicating that the overall selling pressure is not significant.

5. Applicability

• The number of Lightning Network channels has dropped by 18.53% to 67,700.
• The capacity of the Lightning Network has increased by 46.19% to 4760 BTC
• The circulating supply of WBTC has dropped by 24.48% to 194,900 coins.

Overall, in 2022, Bitcoin experienced changes such as a big dump in price, a drop in on-chain activity, and a decline in mining revenue, but still maintained a relatively stable user base and network security. The future development of Bitcoin is still worth paying attention to.