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Binance’s Q3 report: Did high rates dim crypto’s shine?

Binance commingled customer funds and company revenue

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TL;DR

  • Binance’s Q3 report indicates a challenging period for the crypto market.
  • Global crypto market capitalization decreased by 8.6% QoQ.
  • Near’s blockchain activity surged, while others like BNB Chain saw declines.
  • DeFi’s total value locked dropped 13.1%, but Ethereum still dominated with 55.1% of TVL.

The meteoric rise of cryptocurrencies, their ups and downs, seems to be an endless topic of discussion. But the question on everyone’s mind this quarter?

Whether the ‘higher for longer’ interest rates have cast a shadow on the vibrant world of digital finance. The latest data from Binance‘s Q3 Market Pulse report might just provide an answer.

Turbulent Times for Cryptocurrencies

The crypto market’s buoyant bubble seemed to lose some air this quarter. A glance at the global crypto market capitalization, which slipped 8.6% QoQ, reveals a tale of turbulence.

But it’s not just about percentage points; this slip reflected the slowest fundraising since the last quarter of 2020, marking a dip of 21.4% QoQ. A beacon in this dim light? Infrastructure, which managed to outshine its peers.

The blockchain, the very backbone of cryptocurrency transactions, wasn’t immune either. Its activity dipped, albeit with an exception – Near. This blockchain became the poster child for growth, shooting up by a spectacular 120% QoQ.

The trend was further underscored by the spike in Near’s active addresses beginning in August. Not all blockchains shared this good fortune, however. BNB Chain plummeted, while Ethereum inched up, and Solana experienced a slight decline.

Decentralized finance (DeFi) is typically the hotbed of crypto action. However, this quarter it didn’t live up to its hype. The total value locked (TVL) in DeFi slumped 13.1%, even with real-world assets pouring in.

Ethereum, often the poster child of the blockchain world, dominated with 55.1% of TVL but still slid down 18.6%. Meanwhile, Tron was the outlier, with its TVL swelling by 17.9% QoQ. And in the midst of this? Tether, accounting for a whopping 67.2% of the stablecoin market.

NFTs – Are They Still the Golden Child?

Nonfungible tokens (NFTs) have been all the rage, but recent figures suggest a cooling trend. September bore witness to the most abysmal NFT sales since January 2021, amounting to roughly $300 million.

This was a stark contrast to the dizzying highs of August 2021, where the average sale price touched $791.84, only to plummet to a mere $38.17 in September. But here’s the twist – overall NFT transactions experienced an uptick, even with September’s steep decline.

Gaming tokens remained at the forefront of NFT sales, although they bore the brunt of a 44.9% price decrease QoQ. Intriguingly, fewer than 28% of Web3 games are active.

Could Google’s recent nod to NFTs on its Play Store change the game for NFT sales? Only time will tell. But the popularity surge in move-to-earn games like Sweat Economy and SuperWalk, ranking second and third in unique active wallets, hints at shifting sands.

Several major players in the crypto arena witnessed varied fortunes. Six out of the top 10 coins had their moments in the sun this year. Solana’s SOL led the pack with an impressive 113.73% growth, while newcomer TON slid by 3.11%.

Not to be outdone, Bitcoin and Ether marked their territories with rises of 63.05% and 39.9% respectively. But BNB? It lagged, shedding 12.77% by Q3’s end.

Bottomline is Binance’s report unveils a mixed bag of results for Q3. The highs and lows underscore the crypto world’s unpredictable nature.

The only constant? Change. As the digital finance realm continues its evolution, it remains to be seen how these trends will shape the future.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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