TokenInsight x CoinMarketCap Crypto Market Report 2022 Q3

2022 Q3 was a relatively quiet quarter compared to Q2, when the terra / USTC collapse nuked the entire crypto market and buried prominent names such as Three Arrows Capital.

However, there was no shortage of headlines. For example, Ethereum completed the Merge and became a PoS network. Tornado Cash was the first decentralized protocol sanctioned by the US government.

2022 Q3 marked the first quarter where crypto began its rebuild following the market crash in May. Besides the Merge and Tornado Cash sanctions, what are the latest trends and data-driven insights? Which projects are still around and keep BUIDLing? TokenInsight teamed up with CoinMarketCap to deliver to you our Crypto Market Report for 2022 Q3, where we cover the market, stablecoins, DeFi, NFT, and more.

Below are some highlights.

1. Tornado Cash sanction and ETH merge had little impact on Global Crypto Market Cap. The Global Crypto Market Cap was approximately $934.85 billion at the end of Q3 2022. It’s an increase of 4% compared to the end of Q2, while representing only 43.56% of the Market Cap at the end of Q1.
2. Across the Top 10, most DApps and blockchains' revenue fell. Ethereum generated only $2.98 million in average daily revenue in Q3, a 79% decline from Q2.
3. Post-Merge, the spread between ETH and stETH, which once exceeded 6%, is gradually converging.
4. Post-sanction on the 8th of August, there was a massive decrease in the volume of deposits to Tornado Cash. Daily deposit decreased by $4.39m. The withdrawal volume surged after the sanctions, reaching $315m by the end of Q3.
5. In Q3 2022, stablecoins' market cap fell by 2.5%. USDT still dominates 45% of the market, while BUSD is gradually taking the market share of USDC.
6. The TVL of leading chains decreased by 67.76%, but the overall on-chain transactions remained the same. Ethereum performed the best during the bear market. Tron gained market share from the Terra collapse.
7. Stablecoins replaced BTC & ETH as the primary source of collateral on major lending protocols.
8. Despite gaining ground on CEXs in 2021, DEXs struggled to keep pace in Q3 2022. The trading volume of the top 10 DEXs accounts for only 2.15% of the total spot trading volume. 9 out of the top 10 DEXs had lost more than 50% in market cap from 2022 Q1 to Q3. Balancer being the only exception. The performance of non-Ethereum-based DEXs was generally weaker than Ethereum-based ones.
9. DeFi users are becoming increasingly sophisticated, preferring real yields and sustainable tokenomics over high APYs.
10. Ethereum retains the top of NFT volume but Solana, Flow, and Immutable X are closing the gap. Ethereum dominance decreased from 86% in Q2 to 77%.
11. OpenSea’s dominance declines while X2Y2 emerges as the leading challenger. SudoSwap and NFTX made the top 10 for the first time, replacing Decentraland and Rarible. Magic Eden captures ~98% of the volume on Solana and would be #2 on this list, with slightly more volume than X2Y2.
12. PFP & Collectibles is the largest NFT category by trading volume. Despite small movements, the top 10 PFP remained almost the same as last quarter, with a new addition of VeeFriends. Half of the list belongs to Yuga Labs.
13. New layer1 solutions, such as Aptos and Sui, emerged to challenge incumbents and raised a considerable amount of funding. For a more detailed analysis of the upcoming layer1 projects, you may check out our recent report, Beyond Aptos, Sui & Canto | An in-Depth Guide to the Emerging Alt-L1s.

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