Binance Q3 Report Says ‘Q3 Was Challenging Quarter’ Amid High Interest Rates

Binance has released a market report for the Q3 of 2023, finding tough conditions overall.
UwAAAABJRU5ErkJggg==

Binance’s newest quarterly report paints a picture of a “challenging” Q3 2022 amid widespread decline in digital asset markets. Binance highlighted an 8.6% reduction in total crypto market capitalization and a 21.4% drop in crypto fundraising versus the previous quarter in its third-quarter market recap.

According to the report, persistently hawkish central bank policies are keeping pressure on risk assets such as cryptocurrencies.

On-chain activity was likewise rather low, with only the layer-1 blockchain NEAR experiencing a notable increase in transactions. Beginning in August, NEAR also saw an increase of active wallet addresses.

Key KPIs in decentralized finance (DeFi) fell as well, despite an increase in real-world asset integration. Despite increase in liquid staking solutions, total value locked in DeFi declined 13.1% in the third quarter.

According to the research, NFT trading volume and prices remained low, with Q3 sales reaching their lowest level since January 2021. Gaming NFTs were the most active, but their values fell roughly 45%.

The data illustrates crypto’s cooling off after a period of hyper-growth in 2020-2021. However, Binance cited increased institutional involvement from players such as Deutsche Bank, Sony, and PayPal as a positive trend.

“Institutional participation in digital assets increased despite the bearish macro conditions,” the authors of the research said.

Binance also noted advances made during the slump, like as Ethereum’s transition to proof-of-stake, Optimism’s Sybil resistance upgrade, and regulatory progress.

Solana experienced the highest Q3 increase despite preceding weakness of the top ten cryptocurrencies, soaring 114% to defy the broader trend. Aptos, a newcomer, also made his debut on the leaderboard.

3dd
Crypto price performance in Q3 2023. Source: Binance

Despite a 12.8% decline, BNB had the greatest trading volumes among large-cap crypto assets as customers sought refuge from bear markets. This activity aided Binance’s revenue.

More From The Kangaroo Times

Total
0
Shares
Related Posts
Total
0
Share