Coinmarketcap has just released a study on the state of the cryptocurrency market.
What is the face of the cryptocurrency market today? Its total capitalization (strongly driven by bitcoin and ether) fell from $1.082 billion to less than $1.000 billion in August, a drop of nearly 10%, Coinmarketcap reveals at Latest study In the case of the cryptocurrency market.
It must be said that the market experienced two cryptocurrency crashes, in May and June, which caused the major cryptocurrencies — bitcoin and ether — to plummet by more than 70% from their all-time highs last November. As of 5:00 pm today, Bitcoin is trading at just under $20,000 with a capitalization of $379 billion while Ether is trading at $1,450 for a capitalization of $180 billion.
For Coinmarketcap, the passage sous le seuil symbolique des 1.000 milliards of dollars s’explique par les tensions macroéconomiques actuelles, avec une inflation en hausse et les recentes hausses des taux de la Réserve fédérale (Fed) – with en ligne de mire une nouvelle hausse next Wednesday.
Challenging environment for the next year or two
“This macroeconomic backdrop is setting the stage for a challenging environment for the next year or two, not just for cryptocurrencies, but for all major assets globally. This backdrop is considered emerging, and it hasn’t seen a significant economic downturn, so while there has been a track record according to the study, the cyclical record crypto and past price history, it may not be followed closely this time.”
Despite this downward trend, the sector with the strongest growth in August was decentralized finance (DeFi), whose searches on the site increased by 34% in August, amid an influx of new projects: 16 in play-to-earn, 14 in gaming. and 11 in Metaverse. There is a sector that is also on the rise: GameFi, which revolves around the game (the game) and finance.
“Beards are often seen by individuals as the best time to build, and based on developments in the GameFi space, we are likely to see this sector show strong growth and potentially become the next wave of a cryptocurrency trend,” the report says.
Likewise, in this context, the so-called decentralized social applications appear, such as the Lens application from the Aave protocol or even Radicle, which aims to be an alternative to Github.
“Other decentralized protocols supporting the narrative of the growing interest in building social DApps are projects that aim to decentralize both KYC, such as Humanode, and per-human social identity, such as Worldcoin,” the study notes.
Solana is in the lead
Additionally, the study revealed that the three most consulted cryptocurrencies in August on the site were solana (moving from fifth to first place), bitcoin, and ether.
Solana’s notoriety can be explained by the blockchain hack in early August (8,000 wallets were emptied) but also by its good performance in terms of decentralization (according to the Nakamoto coefficient). For its part, bitcoin saw two big spikes in interest in 2022, both last February after Russia invaded Ukraine and in June, when the cryptocurrency fell below the symbolic threshold; $20,000.
Separately, in August, the Binance Coin (BNB) blockchain meme, called RichQuack, removed Bitcoin from Coinmarketcap’s “watch” list, after it was added to the list by 229,000 users. This icon is followed by more than 270,000 followers on Twitter, 50,800 members on Telegram, and 19,400 members on Discord.