Cryptocurrencies are making a big comeback.. will they continue?

It has been a very tough year for investors in Bitcoin and other cryptocurrencies, Bitcoin lost more than half its value in 2022 and is now hovering around $23,000, and the price of a single Bitcoin is down more than 65% from last year's high of around $70,000. The value of all cryptocurrencies has fallen from about $2.2 trillion at the end of 2021 to just over $1 trillion currently.

Bitcoin, the world's largest cryptocurrency, makes up about 42% of the total market, but 2022 has been just as terrifying for owners of other crypto-related assets like Coinbase. The brokerage's stock is down 75% so far this year. Competitor Robinhood's shares have lost half their value.

There are hopes that the worst for cryptocurrency may be over. Bitcoin has gained more than 15% in the past week, and two of the top cryptocurrencies are up even further.

Solana is up over 35% in the past seven days while Ethereum is up nearly 45%. Ether, the second most valuable cryptocurrency, is widely used to fund purchases of non-fungible tokens, or NFTs, the digital asset that has swept the world of holdings.

The comeback of cryptocurrencies could serve as a validation for the sector's biggest proponent. At the same time, it should also serve as a reminder that the emerging market is likely to remain volatile for the foreseeable future.