all about cryptop referances
According to Dappradar’s latest crypto industry report covering 2022’s third quarter, “the crypto economy and its participants are emerging from the bear market.” However, these days a number of macroeconomic events have affected the crypto market, and Dappradar researchers say that it is currently “impossible to foresee a worldwide expansion of cryptocurrencies without a general recovery in conventional financial markets.”
The crypto industry is still dealing with the crypto winter, and the latest report from Dappradar indicates that markets and participants are riding through the storm. For example, after the Terra collapse, the decentralized finance (defi) and decentralized app (dapp) industries have consolidated after taking heavy losses.
Dappradar’s report shows that bitcoin (BTC) and ethereum (ETH) have remained roughly at the same price since the end of June, but the two leading crypto assets have a high correlation with the stock markets.
“In the third quarter, the correlation between BTC and the S&P 500 increased, showing that investors still consider crypto in the same category as risky stocks,” says Dappradar. researcher Sara Gherghelas details.
Also, while Ethereum’s transition from proof-of-work to proof-of-stake via The Merge pushed up prices, “cryptomarkets cooled down after the event.” Moreover, while Dappradars Gherghelas says The Merge was a technical success, a 36% drop in layer two (L2) transactions was recorded.
Despite the overall performance of the crypto market, technology adoption saw a significant upswing. “In July, the company Polygon and Nothing announced a partnership to build a Web3-native smartphone, while Disney, Ticketmaster, Mastercard and Starbucks became the latest leading brands to announce the integration of NFTs as part of their Web3 strategy,” Dappradars Q3 report additional notes.
According to the Dappradar researchers, $428.71 million in losses were recorded during 2022’s third quarter. Most of the losses were stolen from the Nomad Bridge, Dappradar explains, when $190 million was taken from the bridge.
“On a positive note, these numbers indicate a 62.9% decrease compared to Q3 2021, when hackers and fraudsters stole $1,155,334,775,” Dappradar’s researchers add. During the last quarter, the study shows that, in general, the defi ecosystem has shown improvement.
“Defi as a whole showed signs of improvement with a 2.9% growth in TVL [total value locked] from Q2,” notes Dappradar’s study. “Ethereum remains the most dominant chain with its dominance increasing to 69% with $48 billion, a growth of 3.17% from Q2.”
While the defi ecosystem and the crypto economy as a whole saw a slowdown in the third quarter, non-fungible token markets also recorded a decline in trading volume activity. Dappradar’s research shows that NFT trading volume is down 67%, while NFT sales volume increased by 8.3% from the second quarter.
“The increase in sales indicates that the NFT business continues to be in demand, while the drop in trading volume can generally be attributed to the decline in cryptocurrency values,” suggests Dappradar’s research report.
Dappradar’s report concludes that the global economy is dealing with “extreme challenges” and, in the view of some, the tide may be getting worse. The researchers note that it is possible “we may be in the initial stages of the crisis,” but as the tide turns, a bullish run-up will eventually materialize.
“Undoubtedly, another bull run will occur, and it could be much stronger than the previous one,” the Dappradar report’s concluding remarks say. “Every time the market has difficulties, it eventually gets stronger, and the quality of the measures increases.”
What do you think of Dappradar’s third quarter industry report? Let us know what you think about this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Images via Dappradar’s Q3 Industry Report
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