WEB3
by BSCN
October 25, 2023
With help from CoinGecko, we take a look back at what has been a very eventful third quarter of 2023 for the cryptocurrency industry at large...
In the ever-evolving crypto landscape, the third quarter of 2023 was characterized by its unpredictability and significant market fluctuations. A major market downturn in mid-August abruptly divided the quarter, catching traders off guard and affecting the overall performance of digital assets. The trigger for this sudden shift remains elusive, as no major market-related news emerged on the day.
The plunge in Bitcoin's (BTC) value from around $29,000 to approximately $26,000 within a single day on August 17 resulted in the total crypto market capitalization dropping from $1.2 trillion to $1.1 trillion. As a consequence, trading volumes on centralized exchanges experienced a sharp decline of 20.2% during the third quarter compared to the second quarter, reflecting a collective sense of reticence among traders.
However, while the third quarter may have appeared sluggish, CoinGecko's 2023 Q3 Crypto Industry Report offers insights into several key developments:
The Coingecko report presents a series of key insights:
The report delves into the changes within the top 30 cryptocurrencies during the quarter. Notable movements include Solana (SOL) climbing to #7, TrueUSD (TUSD) gaining ground to #19, and Litecoin (LTC) falling to #14. Avalanche (AVAX) and Binance USD (BUSD) also experienced declines in rankings.
Additionally, Hedera (HBAR) and Filecoin (FIL) secured positions in the top 30, while Lido (LDO) and Internet Computer (ICP) slipped out of the rankings.
In the realm of stablecoins, the Coingecko report details the fluctuations in market capitalization. Notably, TrueUSD (TUSD) saw significant growth, while other stablecoins experienced losses in both market cap and percentage decline. New entrants like First Digital USD (FDUSD), crvUSD (CRVUSD), and PayPal's PYUSD made their mark within the top 15.
Tokenized US treasury bills have emerged as a significant driver in the Real World Asset (RWA) sector, with a remarkable 5.84x gain in market cap during 2023. Traditional financial institutions, particularly Franklin Templeton, have played a pivotal role in the sector's growth.
NFT trading volume witnessed a substantial drop of 55.6%, with Ethereum maintaining its dominance in the NFT market. ImmutableX NFTs stood out as a strong performer in Q3, partly due to the success of the trading card game Gods Unchained.
Centralized exchanges faced a turbulent quarter, with Binance's market share dropping to 44%. Regulatory pressures and executive departures played a role in these changes. In contrast, HTX, Upbit, and Bybit saw gains, while Kucoin lost its spot in the top 10.
Decentralized exchanges also saw a decline in trading volume, with Sushi losing its position in the top 10 to Orca. The report also highlights illicit activities involving THORchain and its impact on volume.
Coingecko's Q3 report paints a picture of a dynamic and evolving crypto industry, characterized by market fluctuations, shifting rankings, and the rise of innovative trends like tokenized assets and NFTs. The report provides valuable insights for all stakeholders in the crypto space as they navigate the ever-changing landscape of digital finance.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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