- The market cap of cryptocurrencies increased 8.5% ($981M) in Q3.
- According to the report on the crypto market signaling recovery from the bear market.
A market analysis report from DappRadar for the third quarter (Q3), which uses on-chain data, indicates the cryptocurrency market’s recovery from the current bear market conditions. DappRadar is a web service, which offers extensive data about the most well-known dapps (decentralized applications).
The impact of global interest rate increases and inflation continued to negatively affect cryptocurrencies after the Terra crash. This report also shows hopeful signs of recovery, the market cap of cryptocurrencies increased 8.5% ($981M) in Q3, with DeFi’s TVL increasing by 2.9% ($69B), even after UAWs down 25% from Q2.
Bear Effects on Overall Cryptocurrency
Ethereum’s merger and shift to a Proof-of-Stake (PoS) mechanism technically occurred with a down 15.75% from the previous month. With a 76% loss in September, airdropped coin investors continue to lose money on ETHW, the native asset of the Proof of Work (PoW) chain.
According to the report, Optimism, and Arbitrum, on the other hand, have reached $1 billion in TVL, which is a huge improvement from the previous quarter. The Merge helped both optimism and arbitrum rise by 263% and 35.555%, respectively.
DeFi indicated signs of full recovery, with a 2.9% increase in TVL since Q2. Ethereum is still the most important chain with $48 billion and a 6.9% increase. BNB chain is in second place with $6.6 billion in TVL, an increase of 10.89%. And Tron’s TVL surged by more than 46% from the prior quarter to $5.7 billion.
But the TVL for Polygon, Solana, and Avalanche has decreased by 9.24%, 20.36%, and 28.78% in comparison to Q2. The Solana reduction resulted from the August hack, more than $6 million.
Compared to the second quarter of 2022, Non-fungible token (NFT) trades, increased by 11%. although Ethereum’s NFT trading volume fell by a significant 76%. Even if the Q3 NFT trading volume was $2.71 billion, this is still a huge 67% decrease from Q2 2022.
