Crypto Endures Tough Q3 Despite Institutional Involvement, NEAR and Ethereum Hold Steady
Summary:
The Binance Q3 market report emphasizes a challenging quarter for crypto, with the global crypto market capitalization down 8.6% and fundraising plummeting 21.4%. Despite these declines, institutional involvement from Deutsche Bank, Sony, and PayPal lessened the blow. NEAR saw a significant 120% quarterly increase in blockchain activities, while Ethereum remained the dominant blockchain with 55.1% of total value locked (TVL) despite an 18.6% drop. Nonfungible token (NFT) sales saw a continuous decline, with September marking the worst sales month since January 2021. From a yearly perspective, six out of the top ten coins, including Solana (SOL), Bitcoin (BTC), and Ether (ETH), demonstrated growth.
Crypto has undeniably endured a tough period over the last quarter, as highlighted in Binance's recent Q3 market overview report. Despite staunch adversity in several parts of the market, the entrance of heavyweight figures like Deutsche Bank, Sony, and PayPal provided some respite. Unfortunately, the worldwide crypto market's total value plummeted by 8.6% on a quarterly basis, with a lingering discourse of high interest rates contributing to the situation. The sector of fundraising also suffered, hitting rock-bottom since Q4 of 2020, down by 21.4% quarter-on-quarter, yet the infrastructure field manifested superior performance against the tide. Despite a slight plunge in blockchain activity, NEAR emerged as an outlier, surging around 120% on a quarterly level. The active addresses of NEAR also started to swell from August onwards. While the BNB experienced a steep decline, Ethereum recorded a minor elevation and Solana a gentle contraction.
Decentralized finance, despite an injection of real-world assets, couldn't escape a 13.1% dent in total value locked (TVL), even as liquid staking saw a modest uptick of 10.5%. Ethereum remained the dominant blockchain housing 55.1% of TVL, even amidst a fall of 18.6%. In a surprising turn, Tron's TVL sprouted by 17.9% QoQ. As for the stablecoin market, Tether (USDT) occupied nearly two-thirds of the market share.
Another area that saw a downward direction was the realm of nonfungible token (NFT) sales, with September marking the worst sales month since January 2021, totaling merely around $300 million. A corresponding reduction was witnessed in the average sale price for that month, plummeting from its peak of $791.84 in August 2021 to $38.17. Still, the bleak September performance didn't discourage the overall transaction volume of NFTs from registering an increase. Notably, considerably smaller than one-third of Web3 games are currently live. Still, a potential catalyst for the market has emerged through Google's decision to permit NFTs in its Play Store games, according to Binance. Meanwhile, Sweat Economy and SuperWalk have emerged as strong contenders, securing the second and third slots respectively in terms of unique active wallets, implying a growing interest in move-to-earn games.
As per Binance's data, six out of the top ten coins demonstrated positive trajectories this year. Solana (SOL) turned out as the standout performer, showing an increase of 113.73%, while Ton made its first appearance, albeit with a slight 3.11% dip. Meanwhile, Bitcoin (BTC) recorded a 63.05% increase this year, and Ether (ETH) climbed upward by 39.9%. However, BNB ended the third quarter of 2023 on a rather sour note, witnessing a 12.77% decline.
Published At
10/19/2023 6:30:00 PM
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