Original title: "CoinGecko's Q3 2022 Cryptocurrency Report"
Original Author: CoinGecko
Original compilation: TokenInsight
After the carnage in the second quarter of 2022, the third quarter is a bit of a bottleneck. Despite bullish mid-quarter expectations for Ethereum’s merger, the market is largely consolidating. At the end of the third quarter, the total market value of the Crypto market, BTC, and ETH prices improved slightly. But NFTs haven't enjoyed the same treatment, with volumes plummeting by about 80% this quarter as interest in small images continues to wane. Given global geopolitical tensions and macroeconomic turmoil, the short-term outlook for the crypto market may remain challenging.
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1. In the third quarter of 2022, the total market value of the Crypto market will rebound slightly
The total market value of the Crypto market hit a low of $875 billion on July 19, and it seems that the "bottoming" has been completed. In Q3, the market capitalization topped out at about $120 million, then fell again, and ended up up 6.5% sequentially at the end of Q2, or about $100 billion.
ALGOfell out of the Top30, andETCIt was replaced by the merger of Ethereum, which climbed to the 23rd position. Some notable changes in the Top30 includeXRPexceededBUSDBecame the 6th place (+60%),MATICmoved from 19th to 15th (+66%),UNIJumped from No. 27 to No. 18 (+129%).
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2. Stablecoin Silent Quarter
At the end of the third quarter, the market capitalization of Top15 stablecoins was similar to that at the end of the second quarter, shrinking by about 3% ($4.7 billion) in absolute terms.
Top5 Stablecoin Tether (USDT）、USD Coin（USDC）、Binance USD（BUSD）Dai（DAI) and Frax (FRAX) ranking remains the same, neither newcomers appear nor order changes occur. The market value of Top5 has changed significantly, and USDC has dropped by 16% (9 billion US dollars) after OFAC sanctioned Tornado Cash. BUSD was the main beneficiary, with an 18% increase in market capitalization ($3 billion), likely due to USDC inflows and Binance’s announcement of an automatic BUSD conversion feature.
USDT’s market capitalization also saw a small increase (possibly absorbing some of the USDC sell-off). At the same time, the market capitalization of DAI and FRAX is basically the same as in the second quarter.
Outside of Top5,FEIfell out of Top15, andUSDXBreak into Top15. Some other notable changes includeTUSD(-27%/US$32 million),GUSD(+90%/US$15 million),USTC(-20%/$16 million), andUSDNfirst level title
3. The Dollar Dominates
Even though Bitcoin was quite volatile in Q3, it outperformed all asset classes except the U.S. dollar index (DXY). However, if you look at the performance so far this year, Bitcoin still has the largest decline of all asset classes, that is, 58%.
Bitcoin fell in tandem with U.S. stocks, but compared with the stock market, the price of Bitcoin at the end of the third quarter fell only 1% compared to the beginning of the quarter.
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4. The pessimistic macroeconomic haze drowns out the dawn of a successful Ethereum merger
ETH finally managed to bounce back in Q3, but failed to break the $2,000 mark. It peaked at $1,982 in mid-August before falling back again.
At the end of August, 2 weeks before the merger, the price of ETH started to climb again. But despite being hailed as the greatest milestone in the history of Ethereum, the duration of this rally was quite short-lived.
High CPI, expectations of aggressive rate hikes by the FOMC, and traders touting "inside information" all meant that the sell-off started days before the merger was finalized. With these pessimistic macroeconomic conditions dominating the market, the general consensus is that the Ethereum merger was a “success without splashes.”
Even though ETH is not yet a deflationary asset, combined net daily releases have dropped by a whopping 95%. Although the merger was not aimed at improving the scalability of Ethereum, it is interesting to note that despite a small spike in on-chain transaction volume after the merger, the average gas fee has remained low (~10-20 gwei).
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5. DeFi rebounded in the third quarter, with a quarterly growth of about 31%
DeFi has achieved a decent rebound in the third quarter of 2022, as most categories of projects have managed to arrest the decline. Overall, the market capitalization of DeFi has increased by about 31% quarter-on-quarter. Although ETH plummeted 33% from its quarterly high in mid-August to $1,330, it is still up 26% from the end of Q2, which is in line with the upward trend in DeFi market capitalization.
Not only did DEX maintain its position as the largest category of DeFi, but its market capitalization also increased by 36.8% to $10.9 billion. Notably, liquidity staking protocols nearly tripled in market capitalization to $1.54 billion in Q3, largely driven by events surrounding the Ethereum merger. The native token of Lido Finance, the leading protocol in this categoryLDOThe price of the company rose 264% to $1.6 in the third quarter.
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6. The winter in the NFT market, quarterly transaction volume decreased by 77%
The NFT market suffered a heavy blow in the third quarter, and the total trading volume of the five largest trading markets OpenSea, MagicEden, LooksRare, X2Y2 and CryptoPunks fell by more than 77%.
The latest data for September 2022 shows that about 85% of the transaction volume on X2Y2 may come from swiping, which gives it an advantage over OpenSea in the rankings. Likewise, although LooksRare's transaction volume is already low, it is clear that about 87% of the transaction volume is dominated by scam transactions.
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