What CoinMarketCap’s Q3 report tells us about the crypto industry
The post What CoinMarketCap’s Q3 report tells us about the crypto industry appeared on BitcoinEthereumNews.com.
The digital finance world moves rapidly, and the recent Q3 CoinMarketCap report provides crucial insights into the current state and direction of the crypto industry. From growth narratives to the role of traditional finance in the space, let’s unpack the highlights. A Glimpse at the Market’s Overall Health The total crypto market cap stood at $1.07 trillion USD by the end of Q3. While this marks an 8.56% decrease for the quarter, it’s essential to note that it’s still a significant 34.95% increase year-to-date (YTD). Several significant narratives have come into play in Q3. The emergence of onchain Real World Assets (RWAs), the successful incorporation of leading Layer 2 solutions like Base, and a noticeable uptick in SocialFi’s popularity were some of the standout growth narratives. But the most notable trend this quarter was the relentless drive to introduce more traditional internet users (Web2) to the decentralized world of Web3. Traditional finance, often referred to as TradFi, is also showing increased interest. Particularly in the US, we’ve seen applications for BTC Spot ETFs and ETH Futures & Spot ETFs, indicative of the conventional finance world’s desire to join the crypto journey. Major banks establishing their crypto desks further cements the institutional inclination towards crypto. Unveiling Key Performers and Market Sentiments Interestingly, market sentiment leaned more towards fear this quarter. The CMC Crypto Fear and Greed Index shifted from 60 to 42. This sentiment can be attributed to several events, such as the lateral price movement of Bitcoin, the cascading effect of the Curve Finance exploit in DeFi, and broader economic uncertainties. Liquidity in the market, another critical indicator of the market’s health, saw a decrease. Top centralized exchanges experienced a 30.59% drop in total spot trade volume during the quarter. However, not all sectors experienced a decline. Positive market cap…
Filed under: News - @ October 13, 2023 12:18 am