Crypto News- Gekko Crypto: The third quarter (Q3) of 2023 brought about a notable split, marked by a significant market downturn in mid-August. This downturn, particularly in the cryptocurrency market, had a profound impact, causing the usually slow-paced Q3 to be divided into two distinct parts. On August 17th, Bitcoin (BTC) experienced a sudden and steep drop in value, falling from approximately $29,000 to around $26,000 within a single day.
This abrupt decrease in BTC’s value resulted in the total cryptocurrency market capitalization plummeting from $1.2 trillion to $1.1 trillion. The causes of this sudden decline were not attributed to any major market-related news or events. Instead, it appeared as though traders were winding down their activities in preparation for the end of the summer.
One striking trend observed during Q3 was the decline in trading volumes on centralized cryptocurrency exchanges. Trading activity on these platforms decreased by a notable 20.2% compared to the previous quarter. Despite being a fairly eventful three months for the cryptocurrency market, the momentum appeared to be lacking.
Gekko Crypto Releases 2023 Q3 Crypto Industry Report
CoinGecko’s comprehensive 2023 Q3 Crypto Industry Report delves into various aspects of the cryptocurrency landscape, offering insights into the performance and changes within the market. Here are the top highlights from the report:
1. Total Crypto Market Capitalization Decline: In Q3 2023, the total cryptocurrency market capitalization experienced a significant decline, amounting to nearly 10%. This equated to an absolute drop of $119.1 billion, marking a considerable reduction in the overall market value. Importantly, this decline was part of a more extended trend, as the market had already dipped by approximately 16.3% since reaching a local peak on April 17th.
2. Notable Changes in the Top 30 Cryptocurrencies: Q3 witnessed notable shifts within the rankings of the top 30 cryptocurrencies. Solana (SOL) notably climbed from the 10th position to secure the 7th spot. TrueUSD (TUSD) also made a significant move, rising from 23rd to 19th place. However, other cryptocurrencies, such as Litecoin (LTC), Avalanche (AVAX), and Binance USD (BUSD), experienced declines in their positions. Binance USD’s drop was particularly noteworthy as Binance announced its plan to phase out support for this stablecoin by February 2024. Moreover, Hedera (HBAR) and Filecoin (FIL) made their entry into the top 30, ranking 29th and 30th, respectively.
3. Stablecoins in Flux: The report highlighted that the stablecoin market was in a state of flux during Q3. Overall, the top 15 stablecoins experienced a 3.8% reduction in their market capitalization, resulting in a total market cap of $121.3 billion. Among the top 5 stablecoins, TrueUSD (TUSD) was the only gainer, with a remarkable 12.8% increase in market cap. However, other stablecoins, such as USD Coin (USDC) and Binance USD (BUSD), saw losses in both absolute and percentage terms.
4. Tokenized T-bills: The growth of tokenized Real World Assets (RWA), specifically tokenized US Treasury bills, was a standout trend in Q3. The market cap of these tokenized T-bills increased significantly, from $114.0 million in January 2023 to a remarkable $665.0 million by the end of September. Additionally, there was an expansion in the number of projects offering T-bill tokens, with established financial institutions playing a substantial role in this sector.
5. NFT Market Decline: The Non-Fungible Token (NFT) market experienced a considerable decline in trading volume during Q3. Trading volume dropped by 55.6%, falling from $3.67 billion in Q2 to $1.63 billion in Q3. Despite this decline, Ethereum continued to dominate the NFT market, capturing 83.2% of the market share during Q3. It’s worth noting that ImmutableX NFTs experienced a strong performance in Q3, with its market share increasing from 2.1% in Q2 to 3.9% in Q3. This can be attributed to the trading card game “Gods Unchained,” which launched on the Epic Games Store and had its in-game marketplace roll-out during the quarter.
6. Spot Trading Volumes on Centralized and Decentralized Exchanges: Both centralized and decentralized exchanges experienced declines in spot trading volumes. Centralized exchanges saw a 20.1% decrease in trading volume during Q3, with Binance’s market share dropping to 44%. Regulatory pressures on Binance and market exits contributed to this drop in market share. Meanwhile, on decentralized exchanges, spot trading volumes fell by 31.2%. Notably, SushiSwap (Sushi) lost its position in the top 10 decentralized exchanges, while THORchain recorded a surge in volume. However, it was highlighted that some of THORchain’s increased volume may have been related to illicit transfers.
In conclusion, CoinGecko’s 2023 Q3 Crypto Industry Report paints a detailed picture of the cryptocurrency market’s performance during a pivotal quarter. While the market saw a significant decline in total capitalization and trading volumes, there were also notable shifts in the rankings of cryptocurrencies, the performance of stablecoins, and the growing influence of tokenized Real World Assets (RWA). Additionally, the NFT market showed signs of consolidation, and the regulatory landscape played a significant role in shaping the spot trading volumes on both centralized and decentralized exchanges. The report offers a valuable resource for those seeking a deeper understanding of the cryptocurrency market during this dynamic period.
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