Report: On-chain data points to crypto consolidation in Q3
A third quarter industry report from DappRadar citing on-chain metrics suggests cryptocurrency markets are showing signs of recovery from ongoing bearing market conditions.
A number of factors played their part in a busy third quarter of 2022, with Ethereum’s Merge marking a successful shift to proof-of-stake having a notable influence on layer 2 activity before the event. The report also highlights a slight recovery in the overall cryptocurrency market capitalization, which still sits below the $1 trillion mark.
Third-quarter data reflected an 8.5% increase in the total crypto market cap from July to the end of September 2022. The decentralized finance space also showed signs of consolidation, with the total value locked (TVL) in the space increasing by 2.9% in the third quarter to $69 billion. Ethereum continues to account for the bulk of TVL, with $48 billion locked in smart contracts.
DappRadar also highlights a 12% increase in unique active wallets across the cryptocurrency ecosystem quarter-on-quarter, adding up to 1.8 million. The blockchain gaming sector contributed significantly, with unique wallet addresses increasing by 8% from August to September.
ImmutableX saw its unique active wallets grow by 30% during the same time period and recorded an 87% growth in nonfungible tokenNFT trading volume from the previous quarter while Polygon followed a similar trajectory, seeing its unique active wallets increase by 17% to 148,000.
The number of nonfungible token (NFT) trades increased by 11% from the second quarter of 2022 while Ethereum’s NFT trading volume was down by a large margin of 76%. The NFT trading volume totaled $2.71 billion during the third quarter, which still marks a significant 67% drop from Q2 2022.
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