Cryptocurrency

Bitcoin, DeFi space see light, NFT market declines in Q3

Zegex

coin gecko released report As for the state of the digital asset industry in Q3 2022, this represents a quieter environment than we experienced in Q1 and Q2.

The most notable takeaway from recent releases is how the cryptocurrency market capitalization has made a promising recovery.

As outlined in the report, on July 19, the cryptocurrency market capitalization hit a low of $903 billion. However, it recorded a notable recovery in the third quarter as it reached $1.2 trillion in August. That number dipped toward the end of the quarter, but he finished $100 billion higher than what was recorded at the end of the previous quarter.

Bitcoin outperforms other non-USD assets

Despite enduring a turbulent Q3 period, Bitcoin performed well against other asset classes except the US dollar index. Compared to US equities, bitcoin fell, but finished the third quarter with a minimal 1% price deficit, making a remarkable recovery against the stock market.

One of the most notable findings in the report is the poor performance of stablecoins. The market capitalization of the top 15 stablecoins is down 3% quarter-on-quarter. The USDC market has since fallen 16%, so the drop isn’t outrageous. Ban Tornado Cash by US Office of Foreign Assets Control.

BUSD, on the other hand, profited from the USDC shortfall as its market cap increased by 18%. Also, this positive development of BUSD coincides with the timing when Binance announced his automatic conversion of BUSD.

DeFi recovers as NFT market hits new 2022 lows

Quarter-over-quarter, DeFi market cap recovered 31%. The numbers replicate a laudable recovery, as most DeFi projects have recovered from shortages. Moreover, decentralized exchanges have maintained their reputation as the biggest component of DeFi.

Conversely, declining trading volumes on the top five NFT marketplaces such as OpenSea, Magic Eden, and LooksRare have impacted the general NFT space. As a result, industry transaction volumes fell by 77%, hitting a record low for 2022.

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