October 25, 2023

CoinGecko Reports a 10% Decline in Crypto Market Cap in the Third Quarter

The third quarter witnessed a 10% decrease in the total cryptocurrency market capitalization compared to the previous quarter, as reported by CoinGecko. Additionally, spot trading volume on centralized exchanges saw a substantial 20.1% drop.

The 2023 Q3 Crypto Industry Report by CoinGecko reveals that the overall cryptocurrency market capitalization experienced a significant decline of 10%, equating to a total loss of $119 billion during the third quarter of the year.

Over the same period, spot trading volumes on centralized exchanges also dwindled by 20.1%. Notably, major stablecoins suffered substantial losses in market capitalization.

"USDC saw the largest absolute losses at -$2.26 billion, while BUSD saw the largest percentage decline of -45.3%, with a drop of -$1.87 billion."

Despite a relatively lackluster performance in the crypto market during the eventful Q3, CoinGecko's co-founder, Bobby Ong, remains optimistic about the increasing convergence of Traditional Finance (TradFi) and Decentralized Finance (DeFi), stating in a note:

"Despite the crypto market’s low momentum in an eventful Q3, we are encouraged by signs that TradFi and DeFi are moving closer."

CoinGecko's report specifically highlights August 17 as the pivotal day that divided the relatively subdued Q3 into two distinct parts. On this date, Bitcoin's value plummeted from approximately $29,000 to about $26,000, resulting in a liquidation event that wiped out over $821 million worth of long positions within a mere 24-hour timeframe.

The report also underscores notable shifts in market capitalization rankings during Q3. Solana (SOL) notably advanced from the 10th position to secure the 7th place. Similarly, TrueUSD (TUSD) made significant progress, climbing from the 23rd position to the 19th. In contrast, Litecoin (LTC) slipped from the 9th position to the 14th, while BUSD continued its decline, descending from the 18th to the 27th position.

The large market movements of the last few days have caused the rankings to shift somewhat again.

"Despite it being a pretty eventful three months, the crypto market was absent of any momentum," concluded the report's analysts.
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