Report Reveals Significant Differences in Cryptocurrency Markets During Q3

A new report from cryptocurrency data aggregator CoinGecko says that during the third quarter, a number of intriguing abnormalities appeared in the cryptocurrency markets. Despite significant sell-offs in the early part of this year, the market value of all digital assets rose by more than $100 billion compared to Q2.

Coins and tokens moved nearly exactly in line with the U.S. S&P500 index in Q3, but historically crypto bear markets have mostly dissociated from stock performance. The S&P500’s performance compared to cryptocurrency prices over the period mentioned above had a 0.85 correlation coefficient ranging from 0 to 1.

Additionally, despite a 1% decline in value in Q3, Bitcoin beat all other asset classes except for the U.S. Dollar Index, which gauges the value of a basket of foreign currencies relative to the U.S. Dollar. Investors generally flock to safe-haven assets like the U.S. Dollar and the Swiss Franc during periods of economic instability. However, stablecoins, most of which are tied to the U.S. Dollar, witnessed a sharp decline in circulation of $4.7 billion in Q3.

The OFAC penalty on cryptocurrency mixer Tornado Cash, which made it illegal for stablecoin issuers and users to communicate with the service from the United States, appears to be one of the factors contributing to the decline. Decentralized finance (DeFi) apps’ overall market value surged by 31.3 percent quarter over quarter to $24.5 billion. All verticals had a system-wide comeback, with the exception of asset management. This was expected because a general bear market had only been sparked by the collapse of centralized financial companies using DeFi software, such as Celsius and Three Arrows Capital.

Last but not least, the total trading volume of nonfungible tokens (NFTs) fell by 77.4% on a quarterly basis from Q2 to Q3. However, at the same time, a startling 1 million more wallets in Q3 had ever owned an NFT. Recently, some in the cryptocurrency world have begun to predict the bottom of the market upheaval.

Related News

Verasity – a next-generation video sharing platform

YouTube, Facebook, and Vimeo and other platforms have propelled video into the mainstream. But, controlled by the middlemen, the majority of the value generated by viewers still


Iron Gate Wine now accepts Bitcoin and Bitcoin Cash payments

Do you like wine? How about wine from upstate New York shipped to your door across the world? Now it’s possible to do with cryptocurrency.


Crypto Betting/Gaming Platform MoonRekt Accepts Bitcoin

Hxro Games Inc., the developer of MoonRekt, an innovative trading/gaming platform, recently announced that players


New malware ComboJack steals users’ wallet addresses from their clipboards

Detected by Palo Alto Networks, a Trojan-like malware CryptoJack replaces a wallet address the user copied to the clipboard with