Crypto market capitalization remained virtually unchanged in Q2 2023. DeFi and NFT sectors demonstrated downward trends. Among gaming Web3 projects, less than a third were active. These and other factors indicate the continuation of bearish trends in the market.
Analysts from Binance Research published a report on the situation in the cryptocurrency market, which was observed in Q2 of this year. The presented data relate directly to the crypto market, the largest blockchain ecosystems, and the sectors of DeFi, NFT, and Web3 gaming.
Globally, the situation in the cryptocurrency market has remained virtually unchanged over the past three months. The total market cap grew by 0.4%. The Fear and Greed Index decreased by 7 points. Bitcoin increased its market dominance by 5.4% at the expense of smaller cryptocurrencies that fall into the “Others” category — their total market share fell by 4.4%. At the same time, approximately 20% of all ETH in circulation were staked — the total volume of blocked Ethereum tokens went up by 43.7%.
Transaction volume on the four largest layer 1 blockchain networks grew by 44%. Avalanche saw the biggest increase, up 176%. The other three networks showed more modest growth:
- BNB chain (+5%);
- Solana (-1%);
- Ethereum (-4%).
On average, the daily number of active addresses in the Avalanche network increased by 109%, in the BNB Chain network — by 50%, while in the Ethereum network there was a drop of 18%, and the daily number of Solana users decreased by 69%.
Total value locked (TVL) in DeFi protocols fell by 11.2% to $44.2 billion, with over 50% of that belonging to projects operating on Ethereum. Lido remains the largest among DeFi projects, with the volume of funds at its addresses growing from $11 billion to $14.9 billion over the past quarter. The share of trading on decentralized crypto exchanges (DEX) was 16.8% by the end of the quarter, down from a peak of 22% seen in May.
Trading volume in the NFT market declined by 23%, with the number of unique buyers dropping by 61%. However, the total number of transactions increased by 27%. The NFT-500 price index decreased by 19%. Over 50% of the market still belongs to projects launched on the Ethereum network. In terms of trading volume, OpenSea finally ceded the leadership to Blur, although it still remains the leader in terms of active users — 26.1% of all market participants use it. The NFT aggregator Uniswap takes the second place by the number of users with the indicator of 23.3%. Blur ranks only sixth, the platform is used by 5.3% of all NFT traders.
In the Web3 gaming sector, blockchain networks BNB Chain, Ethereum, and Polygon hold the lead, accounting for more than 67% of all projects. But overall, only 28% of games have already been launched, with most of the remaining projects still under development. The most popular are mobile games in Action, Strategy, and Adventure genres.
Recently, CoinGecko also presented a big report on the state of the cryptocurrency market in Q2, while CoinMarketCap analysts summarized the results of H1 2023.
