In 2022, the cryptocurrency market was hit by a crypto winter which saw a significant decline in major cryptocurrency prices. Consequently, most tracked digital assets traded on local DAXs recorded negative performances (Chart 1) as recessionary fears and geopolitical tensions sapped demand for high-risk cryptocurrency assets.

Trading activity in the local DAXs declined towards the end of the period in 2022, with Tokenize gaining more traction compared to its peers (Chart 2). Overall, digital assets value traded remained small at 0.35% compared to the domestic equity market as at December 2022.