What stages has the currency circle gone through?

The currency circle has gone through a budding period, a period of rapid growth, a period of bubble bursting, a period of recovery and a period of institutionalization. From its inception to institutionalization, the currency circle has gradually developed into an asset class recognized by traditional financial institutions and enterprises.

The development stages of the currency circle

The development of the currency circle has gone through the following main stages:

1. Embryonic period (2009-2013):

• The birth of Bitcoin in 2009 marked the beginning of the cryptocurrency era.
• This stage is mainly dominated by Bitcoin, and the market size is small.

2. Rapid growth period (2013-2017):

• A large number of cryptocurrency projects emerged, and the market scale expanded rapidly.
• The bull market peaked in 2017, with Bitcoin prices topping $20,000.

3. Bubble burst period (2018-2019):

• The market experienced a sharp correction and cryptocurrency prices plummeted.
• Many speculative projects failed and market sentiment was depressed.

4. Recovery period (2020-2021):

• Stimulated by factors such as the epidemic and institutional investment, the market began to recover.
• Multiple cryptocurrencies broke through previous highs, and market sentiment recovered.

5. Institutionalization stage (2022 to present):

• Traditional financial institutions and enterprises have begun to enter the currency circle and promote the institutionalization of the market.
• Market volatility is gradually calming down, and cryptocurrencies are being viewed as a new asset class.

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