The specialized site Coinmarketcap has just released a study on the state of the cryptocurrency market.
What face does the cryptocurrency market have today? Its total capitalization (strongly driven by bitcoin and ether) fell from 1.082 billion dollars to less than 1.000 billion in August, a drop of almost 10%, reveals Coinmarketcap in its latest 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 main cryptocurrencies – bitcoin and ether – to fall by more than 70% from their all-time highs last November. As of 5:00 p.m. today, bitcoin is trading at just under $20,000 and has a capitalization of $379 billion while ether is trading at $1,450 for a capitalization of $180 billion.
For Coinmarketcap, the drop below the symbolic threshold of 1,000 billion dollars is explained by the current macroeconomic tensions, with rising inflation and the recent rate hikes of the Federal Reserve (Fed) – with a line of sight for a further increase. next Wednesday.
A challenging environment for the next year or two
“This macroeconomic backdrop sets the scene for a challenging environment for the year or two ahead, not just for crypto, but for all major assets globally. considered nascent, it has never experienced a major economic downturn, so while there has been a recorded track record of crypto cyclicality and previous price history, it might not be closely followed this time,” says the study.
Despite this downward trend, the sector that saw the strongest growth in August was decentralized finance (DeFi), whose searches on the site increased by 34% in August, amid the influx new projects: 16 in play-to-earn, 14 in gaming and 11 in the metaverse. A sector would also be rising: the GameFi, which revolves around the game (game) and finance.
“Individuals often view the 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” , says the report.
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 know-your-customer process, like Humanode, and the social identity of every human, like Worldcoin,” the study points out.
Solana in the lead
In addition, the study reveals that the three most consulted cryptocurrencies in August on the site are solana (which goes from 5th to first position), bitcoin and ether.
Solana’s notoriety can be explained both by the hacking of the blockchain in early August (8,000 wallets emptied) but also by its good performance in terms of decentralization (according to the Nakamoto coefficient). For its part, bitcoin has seen two big spikes in interest in 2022, both last February following Russia’s invasion of Ukraine and in June, when the cryptocurrency fell below the symbolic threshold. $20,000.
Separately, in August, the Binance Coin (BNB) blockchain meme token, called RichQuack, dethroned bitcoin’s spot on Coinmarketcap’s “watch” list, after being added to the list by 229,000 users. . This token is followed by more than 270,000 Twitter followers, 50,800 members on Telegram and 19,400 members on Discord.