Based on the third-quarter report released by data infrastructure CoinGecko, the most recent information indicates that although cryptocurrency faced a significant market meltdown in Q2 2022, the digital tokens made some comparative comeback in Q3 despite the continuing adverse market circumstances. According to CoinGecko, the research emphasized how this recovery can be seen in the reality that the current valuation of the crypto market grew from a low of $903 billion in July to as high as $1.2 trillion in August.
Even though Bitcoin had a difficult third quarter, it still succeeded in surpassing conventional assets like gold, oil, and other commodities, with the exception of the US Dollar Index (DXY), which measures the worth of the dollar relative to other world currencies. However, when looking at the year to date (YTD), Bitcoin still suffered the most loss (-58%), when compared to all other asset classes. In other words, according to data from CoinGecko, the cryptocurrency has fallen more than 58% year-to-date and is currently trading at roughly $19,113.66 per coin. While still mainly trading in lockstep with US stocks, bitcoin in Q3 fared better than the stock market overall.
DeFi Rebounds
The Decentralized Finance (DeFi) market recovered by 31% in the third quarter, rising from $54.66 billion on July 1 to $63.02 billion as of August 23 2022, according to data from CoinGecko. It's no secret that the DeFi market has been struggling; statistics from the second quarter of 2022 revealed that the DeFi environment lost 68.13% of its total value locked (TVL), or $155.79 billion.
In addition to continuing to represent the majority of DeFi, DEXs (decentralized exchanges) saw a considerable increase in market share, rising by 36.8% to $10.9 billion, per the data. This was caused by an increase in trading volume, which has been primarily fueled by the Merge story, and by the continuous success of the fluid staking market. The market value of the liquid staking industry nearly tripled in 3Q to $1.54 billion, while Lido, the market cap leader in that sector, increased 264% to $1.60 during that time.
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