A third quarter industry report by DappRadar cites on-chain indicators to suggest that the cryptocurrency market is showing signs of recovery from the ongoing inventory market situation.
Many factors contributed to a busy third quarter of 2022, with the Ethereum merger marking a successful move to Proof of Stake and having a noticeable impact on Layer 2 activity prior to the event. The report also highlights a slight recovery in total cryptocurrency market capitalization, which is still below $1 trillion. It reflects an 8.5% increase in total cryptocurrency market capitalization to date. Decentralized finance is also showing signs of consolidation, with total value (TVL) for the sector rising 2.9% to $69 billion in Q3. Ethereum continues to dominate TVL, with $48 billion locked in smart contracts.
DappRadar also highlights that his active wallets, unique across the cryptocurrency ecosystem, increased by 12% quarter-on-quarter, bringing him to 1.8 million in total. The blockchain gaming sector was a big contributor, with unique wallet addresses growing 8% from August to September.
ImmutableX saw a 30% increase in unique active wallets and an 87% quarter-on-quarter increase in non-fungible token NFT trading volume over the same period, while Polygon followed a similar trajectory with a 17% increase in unique active wallets. did. 148,000 increased.
Non-Fungible Token (NFT) transaction numbers increased by 11% compared to Q2 2022, while Ethereum NFT transaction volume dropped significantly by 76%. Q3 NFT trading volume totaled $2.71 billion, down a whopping 67% from Q2 2022
NFT projects owned by Yuga Labs dominated the market in September, with Other side, Bored Ape Yacht Club, Mutant Ape Yacht Club and Crypto Punks accounting for 46.21% of the NFT market cap.
Theft of cryptocurrency assets is also in the spotlight again, with blockchain bridges still being targeted. DappRadar cited his $190 million Nomad exploit in August as the primary cause of his $461 million stolen crypto assets in the third quarter. Algorithm market maker Winter mute also succumbed to his $160 million exploit during the same period.
DappRadar’s report also highlights the impact of broader macroeconomic factors on the global economy. When central banks try to manage inflation to offset the effects of a recession by raising interest rates:
“Current macroeconomic conditions significantly influence the crypto market, making it impossible to foresee a worldwide expansion of cryptocurrencies without a general recovery in conventional financial markets.”
These somewhat bleak outlooks contrasted with many positive developments in the third quarter of 2022. The European Union’s approval of the Crypto Asset Market (MiCA) regulatory plan shows that governments are trying to carefully manage the industry.
Similarly, in September 2022, the White House will release the first-ever comprehensive framework for the responsible development of digital assets to protect investors and move cryptocurrencies into a fully mainstream industry.
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