According to Dappradar’s latest crypto industry report that covers 2022’s third quarter, the crypto economy and its participants are “riding out the bear market.” However, these days a number of macroeconomic events have influenced the crypto market, and Dappradar researchers say it’s currently “impossible to foresee a worldwide expansion of cryptocurrencies without a general recovery in conventional financial markets.”
Dappradar report highlights the slow but steady recovery of the crypto economy
The crypto industry is still dealing with the crypto winter and the latest report from Dpradar indicates that the markets and participants are trucking through the storm. For example, following the collapse of Terra, the decentralized finance (DeFi) and decentralized apps (dApp) industries have consolidated after taking heavy losses.
Dappradar’s report shows that bitcoin (BTC) and ethereum (ETH) have remained roughly around the same price since the end of June, but the two leading crypto assets have a high correlation with equity markets.
“In Q3, the correlation between BTC and the S&P 500 increased, indicating that investors still consider crypto to be riskier stocks in the same category,” said Dappadar. Researcher Sarah Gherghelas description.
Moreover, while Ethereum’s transition from proof-of-work to proof-of-stake via The Merge pushed prices up, crypto markets “cooled down after the event.” Moreover, while Dappradar’s Gherghelas says The Merge was a technical success, a 36% drop in layer two (L2) transactions was recorded.
Despite the overall performance of the cryptocurrency market, there has been a significant increase in technology adoption. In July, Polygon & Nothing Company announced a partnership to build Web3-native smartphones, while Disney, Ticketmaster, Mastercard and Starbucks became the latest leading brands to announce the integration of NFTs as part of their Web3 strategy. ,” Dappadar’s third quarter report further notes.
According to the Dappradar researchers, $428.71 million in losses were recorded during 2022’s third quarter. Most of the losses were stolen from Nomad Bridge, Dappradar explains, as $190 million was siphoned away from the bridge.
“On a positive note, these figures indicate a decline of 62.9% compared to the third quarter of 2021, when hackers and fraudsters stole $1,155,334,775,” said researchers at Dappradar. Over the past quarter, the study noted that in general, the DeFi ecosystem has shown improvement.
“Defi as a whole showed signs of recovery with a 2.9% growth in TVL [total value locked] from Q2,” Dappradar’s study notes. “Ethereum remains the most dominant chain with its dominance increasing to 69% with $48 billion, a 3.17% growth from Q2.”
While the DeFi ecosystem and the crypto economy as a whole saw a decline in the third quarter, the non-fungible token markets also saw a decline in trading volume activity. Dpradar’s research shows that NFT trading volume is down 67%, but NFT sales volume is up 8.3% from the second quarter.
“The rise in sales indicates that the NFT business continues to be in great demand, whereas overall the drop in trading volume may be attributable to the decline in cryptocurrency values,” Dappradar’s research report suggests.
The Dapradar report concludes that the global economy is dealing with “extreme challenges” and that in some people’s opinion, the tide could turn worse. The researchers note that it is possible “we may be in the early stages of the crisis” but when the tide turns, a rapid runup will eventually materialize.
“Undoubtedly, a further bull run will occur, and it may be much stronger than the last one,” the Dappradar report’s closing statements detail. “Each time the market has difficulties, it eventually becomes stronger, and the quality of initiatives increases.”
