CoinGecko, a crypto market aggregate, has issued its Q3 2022 crypto report, including six highlights from what they claim to be studying the crypto market environment to assessing Bitcoin and Ethereum, how DeFi is making a rebound, and NFT winter.
The first point to mention is that the cryptocurrency market has “inched upward.” According to CoinGecko, the entire market valuation of cryptocurrency rose to $1.2T in August before dipping again to conclude the quarter 6.5% higher than at the end of Q2. Following a 50% QoQ loss in Q2, the market was mostly in consolidation mode in Q3.
Second, CoinGecko claims that the quarter has been quiet for stablecoins. According to the research, the top 15 stablecoins lost 3% of their market valuation (-$4.7B). After OFAC sanctioned Tornado Cash, the market cap of $USDC plummeted 16%. According to the market aggregator, $BUSD gained the highest, reaching 18% owing to inflows through USDC and BUSD auto-conversion.
When compared to other asset classes, including the US Dollar Index, CoinGecko found that Bitcoin has performed better (DXY). However, Bitcoin has suffered the most year-to-date loss of -58% among all asset classes.
The fourth point is that macroeconomic reasons overwhelm Ethereum’s merger. Ethereum eventually had a surge in early Q3, peaking at $1,982 in mid-August before falling again. A combination of rising CPI and FOMC rise expectations caused a selloff days before the Merge.
According to CoinGecko, DeFi made a return in Q3. The industry recovered well, with a 31% increase in market capitalization year on year.
Finally, the industry is now experiencing an NFT winter. Trading volume in the op 5 NFT market venues fell 71% year on year. MagicEden was the only NFT marketplace that showed an increase in September, tripling its MoM volume, thanks to the recent headline-grabbing debut of y00tsNFT.
