Q3/2022 Cryptocurrency Market Report – CoinMarketCap x TokenInsight

The crypto industry ended Q3/2022 with a lot of surprises. Let's take a look at the important events that have taken place in the past three months.

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This is a summary of the Q3/2022 Cryptocurrency Market Report conducted by CoinMarketCap in collaboration with market research organization TokenInsight. Interested readers can view the full report HERE .


1. Global Cryptocurrency Market Cap Low Volatility

The global crypto market cap was around $934.85 billion at the end of Q3 2022. The market cap was up 4% from the end of Q2, but still only accounted for 43.56%  of the market cap at the end of Q2. end of the first quarter.

2. The revenue of most of the top 10 DApps and blockchains is down

Ethereum raked in $2.98 million in average daily revenue in Q3, down 79% from Q2.

Derivatives exchanges dYdX and GMX saw improved revenue this quarter. NFT exchange OpenSea maintained its No. 2 spot. LookRare fell four places, while X2Y2 entered the Top 10 for the first time.

3. The Merge of Ethereum

After The Merge, the difference between ETH and stETH is gradually narrowing, although sometimes the difference is up to 6%.

Almost  60% of staking ETH is held by just four institutions  – Lido, Coinbase, Kraken, and Binance, further centralizing the network.

The supply of newly released ETH dropped significantly after The Merge, and PoW forks were quickly "silent" after a short period of explosive activity.

4. Tornado Cash is "sealed"

After being “punished” by the US on August 8, there was a significant drop in the volume of deposits to Tornado Cash . Daily deposit dropped to $4.39 million.

Withdrawal volumes skyrocketed following the sanctions, reaching $315 million at the end of Q3.

Half of the money comes from DeFi  protocols . Weekly transfer fees and profits increase when something serious happens.

5. Stablecoin Situation

During the third quarter of 2022, the market capitalization of stablecoins decreased by 2.4%. USDT still dominates 45% of the market, while BUSD is gradually taking the market share of USDC.

6. DeFi Market Overview

The TVL of the top chains  decreased by 67.76% , but overall  on-chain transactions remained the same .

Ethereum is the best bearer in this bear market. Tron gained market share from Terra's demise.

7. Lending and borrowing activities

Stablecoins have replaced BTC & ETH as  the primary source of collateral  on major lending protocols.

The market share of stablecoins as the primary source of collateral increased across protocols in Q3 2022, displacing cryptocurrencies like BTC and ETH. Meanwhile, USDC, USDT and DAI account for 58% of collateral on MakerDAO and 52% on Compound, up from 50% and 40% respectively compared to Q2.

8. Decentralized Exchange (DEX)

Spot trading volume on DEX tends to decrease.

Total spot trading volume has fallen 46.87% from its peak in Q2 2021. Despite a gain on CEX in 2021, DEXs have struggled to keep pace  in Q3 2022. Volume Trading of  the top 10 DEXs accounts for only 2.15% of total spot trading volume . Additionally, 9 of the top 10 DEXs have lost more than 50% of their market capitalization between Q1 and Q3 2022, with Balancer being the only exception.

The performance of DEXs without an Ethereum platform is generally weaker than that of DEXs with an Ethereum platform.

9 . Real Yield Search Trends

DeFi users are becoming increasingly sophisticated, preferring profitable investment opportunities and having sustainable APY – aka the Real Yield movement.

10. NFT Market    

NFT trading volume fell 66.5% last quarter, while the number of investors fell 30.4%. The NFT market has now dropped back to pre-July 2021 levels and is likely to decline further.

Ethereum NFT  still holds the top spot but Solana, Flow and Immutable X are closing the gap.

OpenSea's dominance declines while  X2Y2 emerges as the top challenger .

Sudoswap and NFTX broke into the top 10 for the first time, replacing Decentraland and Rarible.

Magic Eden accounts for about 98% of the trading volume on Solana.

  • The best NFTs

PFPs (profile pictures) and Collectibles (collectibles) are the largest types of NFTs by market capitalization . Its market share increased slightly from 67% the previous quarter.

Despite the slight fluctuations,  the top 10 PFPs  remained roughly the same from the previous quarter, with the new addition of  VeeFriends  .

  • New NFT projects are born

We have a few new projects that have increased in price recently, although the overall market is still a bearish market.

11. Emerging layer 1 foundation

New projects, such as Aptos and Sui, have emerged to challenge existing projects and raise significant amounts of capital.

Nov 07, 2022

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