Binance Release Q3 Market Report. Details
- Binance claimed DeFi protocols suffered a heavy decline in the quarter.
- With over $300 million in sales, September was the lowest month for NFT since January 2021.
- Web3 infrastructure performed the most as compared to other sectors in the quarter.
- On-chain activity was relatively quiet in Q3.
Crypto exchange Binance has released its Q3 market pulse report, admitting that the quarter was challenging for the cryptocurrency industry. The report observed a serious market decline across different sectors. It claimed central bank policies put assets such as cryptocurrencies under pressure. However, Binance said the arrival of institutional giants like Sony, Deutsche Bank, and PayPal alleviated some of the struggles.
Interestingly, the report revealed that the quarter saw a massive decline in fundraising, about 21.4% QoQ. On-chain activity was likewise mainly quiet, with the exception of layer-1 blockchain NEAR, which saw a notable increase in transactions. NEAR also saw an increase in active wallet addresses in early August. Ethereum and Solana experienced a slight surge in the quarter, but BNB fell sharply.
Although the quarter saw an increase in real-world asset integration, key metrics in decentralized finance (DeFi) suffered huge declines. For example, while liquid staking solutions increased in Q3, the total value locked in DeFi decreased by 13.1%. Also, Ethereum emerged as the leading blockchain with 55.1% of TVL, despite recording an 18.6% decline.
Tether retained its leading role in the stablecoin sector, accounting for 67.2% of the market share. As per the report, NFT trading volume and prices continued to decline, with Q3 sales reaching their lowest point since January 2021. September was the worst month in terms of NFT sales. They sold for an average of $38.17 that month, which was less than their peak of $791.84 in August 2021.
In terms of NFT sales, gaming tokens performed the most. However, their values fell by over 45%. The report predicts that the NFT gaming sector could see a boost in the coming months. According to Binance, Google’s move to permit NFTs in games on its Play Store could provide the market with fresh momentum.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
