The end of 2022 was perhaps the most destructive few weeks for crypto in its entire fledgling lifespan. The downfall of Sam Bankman-Fried and his FTX empire sent damaging ripples through the entire cryptocurrency industry. The one-time beloved billionaire eccentric faces 12 charges and over 100 years in prison if convicted. So now that we’re a few months removed from the initial ordeal, what is the state of the crypto industry?
Bitcoin’s recovery is a good sign for the state of crypto in early 2023.
Though a far cry from its peak, Bitcoin has recovered significantly over the last several weeks. The world’s oldest cryptocurrency briefly slipped below $16,000 in late November, fresh after FTX’s implosion. However, since then, the crypto has shot back up to around $23,500 at the publication of this article. Though there have been some dips, Bitcoin has steadily trended upward since the beginning of 2023.
Binance faces heightened scrutiny by regulators since FTX’s collapse.
Binance’s CEO, Changpeng “CZ” Zhao, played a significant role in the collapse of rival DeFi exchange FTX. A few tweets from the executive sparked the FUD that spiraled into a disaster for the cryptocurrency industry. However, Binance remains (mostly) stable for the time being.
Although, what proved unstable was the Binance USD stablecoin, which briefly slipped from its $1 peg on February 22. The coin restabilized shortly after, but a single $647,000 withdrawal triggered the drop. Additionally, the Securities Exchange Commission rejected the company’s $1.02 billion deal to purchase the defaulted assets of Voyager Digital.
Ethereum held reasonably steady through the uncertainty.
Ether briefly slipped below $1,200 in the wake of FTX’s demise. However, the coin had seen worse in the early throes of crypto winter when it momentarily dipped below $1,000. At publication, ether trades at around $1,600 and held steady around that mark for several weeks.
Additionally, the long-awaited Shanghai upgrade is the most significant upgrade to the chain since the switch to proof-of-stake. The upgrade will finally allow users to withdraw their staked ether.
