Third latest quarterly report highlights a period of consolidation across the crypto ecosystem after a tumultuous second quarter.
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. The Ethereum merger marks a successful transition to proof-of-stake that had a noticeable impact on layer 2 activity prior to the event. The report also highlights a slight recovery in the total cryptocurrency market capitalization, which is still below $1 trillion.
The third quarter data reflects an 8.5% increase in total cryptocurrency market capitalization from July to the end of September 2022. 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 his TVL, with $48 billion locked in his smart contracts.
DappRadar also highlights 12% quarter-on-quarter growth in unique active wallets across the cryptocurrency ecosystem, reaching a total of 1.8 million. 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-over-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. . 148,000 records.
The number of non-fungible token (NFT) transactions increased by 11% compared to Q2 2022, while Ethereum’s NFT trading volume dropped significantly by 76%. His NFT volume totaled $2.71 billion in Q3, down a whopping 67% from Q2 2022.
Yuga Labs-owned NFT projects 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 Nomad exploit, worth $190 million in August, as the main cause of his $461 million crypto assets stolen in the third quarter. Algorithmic market maker Winter mute also succumbed to his $160 million exploit during the same period.
The DappRadar 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:
“it is unlikely that cryptocurrencies will expand globally without an overall recovery in traditional financial markets.”
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These somewhat bleak outlooks contrasted with many positive developments in the third quarter of 2022. The European Union’s approval of a regulatory plan for the cryptocurrency market shows that governments are trying to carefully manage the industry.
Similarly, in September 2022, the White House announced the “first-ever comprehensive framework for the responsible development of digital assets” to protect investors, and move cryptocurrencies into a fully mainstream industry. suggests that it has happened.
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