The specialized website Coinmarketcap has just published a study on the state of the cryptocurrency market.
What is the face of the cryptocurrency market today? Its total capitalization (driven strongly by bitcoin and ether) fell from $1.082 billion to less than $1.00 billion in August, a drop of nearly 10%, Coinmarketcap reveals in the last study on the state of the crypto market.
It must be said that the market experienced two crypto crashes, in May and June, causing the major cryptocurrencies – bitcoin and ether – to fall by more than 70% from their all-time highs last November. As of 5pm today, bitcoin is trading at just under $20,000 and has a market cap of $379 billion, while ether is trading at $1,450 for a market cap of $180 billion.
For Coinmarketcap, the drop below the symbolic $1,000 billion threshold is explained by current macroeconomic tensions, rising inflation and the recent Federal Reserve (Fed) rate hike – with an eye on a further hike next Wednesday.
A challenging environment for the next year or two
“This macroeconomic backdrop sets the stage for a challenging environment for the next year or two, not just for crypto, but for all major assets globally. Considered a fledgling, it has never experienced a major economic downturn, so that while there has been a recorded track record of crypto cyclicality and previous price history, it may not be closely followed this time around,” the study said.
Despite this downward trend, the sector that saw the strongest growth in August was decentralized finance (DeFi), whose site searches grew by 34% in August amid an influx of new projects: 16 in play for won, 14 in games. and 11 in the metaverse. One sector would also be on the rise: GameFi, which revolves around gaming (gaming) and finance.
“Individuals often see a bear market as the best time to build and based on developments in the GameFi space, we are likely to see this sector show strong growth and potentially become the next wave of the crypto trend.” the report says.
Similarly, in this context, so-called decentralized social applications are emerging, such as the Lens application from the Aave protocol or even Radicle, which aims to be an alternative to Github.
“Other decentralized protocols that support the narrative of growing interest in building social DApps are projects that aim to decentralize both the process of knowing your customer, like Humanode, and the social identity of every human, like Worldcoin,” he points out. the study.
Solana at the top
In addition, the study reveals that the three most consulted cryptocurrencies in August on the site are solana (moving from the 5th position to the first position), bitcoin and ether.
Solana’s popularity can be explained both by the blockchain hack at the beginning of August (8000 empty wallets), but also by its good performance in terms of decentralization (according to the Nakamoto coefficient). For its part, bitcoin has seen two major spikes in interest in 2022, both last February after the Russian invasion of Ukraine and in June, when the cryptocurrency fell below the token threshold. 20,000 dollars.
Separately, in August, blockchain meme token Binance Coin (BNB), dubbed RichQuack, knocked bitcoin’s place on Coinmarketcap’s “watch” list after being added to the list by 229,000 users. This token is followed by more than 270,000 followers on Twitter, 50,800 members on Telegram and 19,400 members on Discord.