Analyzing the current state of Ethereum, DeFi, stablecoins, NFTs post-FTX fallout

2022 approaches year-end; it has been a historical year for all asset classes due to the rapid tightening of monetary policy worldwide and the strength of the U.S. dollar. It had severe implications on the crypto ecosystem, which has seen a wide range of liquidations and margin calls, as well as the collapse of FTX and Luna.

A mixed year for the Ethereum ecosystem saw a successful merge in September, and, as a result, ETH was net deflationary for October. However, the magnitude of losses from an investor point of view has been monumental in the DeFi ecosystem.

Ethereum is currently 73% off its all-time high, floating around $1,200; significant liquidations and deleveraging have occurred in 2022 with the fall out of Luna back in May and FTX collapse in November.