Bitcoin and DeFi Protocols Shine in Q1 2023 Crypto Industry Report

NFT Studio 24
4 Min Read

The cryptocurrency market has shown robust growth in Q1 2023, led by Bitcoin and decentralized finance (DeFi) protocols, according to the “2023 Q1 Crypto Industry Report” published by CoinGecko on April 18.

Bitcoin Emerges as the Best-Performing Asset of Q1 2023

Bitcoin outperformed traditional assets in Q1 2023, with a 72.4% gain in market capitalization. This was significantly higher than the Nasdaq index and gold, which marked 15.7% and 8.4% gains, respectively. The report suggests that all major asset classes saw gains through the first quarter of the year, except crude oil, which dropped by 6.1% due to the reduction in oil demand and the ill effects of the U.S. banking crisis.

Cryptocurrency Market Cap Reaches $1.2 Trillion at the End of Q1

The cryptocurrency market has enjoyed a quarter of resurgence, with the overall market capitalization reaching $1.2 trillion at the end of Q1. The report highlights a 48.9% gain of $406 billion from the cryptocurrency market cap of $829 billion at the end of 2022.

DeFi Protocols and Liquid Staking Tokens Surge in Market Capitalization

The DeFi space has been another standout performer in Q1 2023, rising by $29.6 billion in value. The report cites the impressive performance of liquid staking governance tokens, which saw a 210% increase in market cap since the start of 2023. Ethereum’s Shapella upgrade played a major role in driving the increase of capital flows into liquid staking pools, with the network’s upgrade finally unlocking ETH staking reward withdrawals. Liquid staking is now the third-largest category in the DeFi sector.

Stablecoins See a Drop in Market Cap

The top 15 stablecoins saw their market cap drop by $6.2 billion in Q1 2023. CoinGecko attributes this 4.5% drop in market cap to the shutdown of Binance USD by Paxos and the temporary depeg of USD Coin during the collapse of Silicon Valley Bank in March 2023. Tether (USDT) has strengthened its position as the largest stablecoin by market cap in 2023, adding $13.6 billion since the start of the year, while USDC and BUSD recorded market cap losses of 26.9% and 54.5%, respectively.

Non-Fungible Token Trading Volume Surges in Q1 2023

Non-fungible token (NFT) trading volume has surged again in 2023, marking a 68% rise from Q4 2022 to $4.5 billion during the first quarter of 2023. NFT marketplace newcomer Blur accounted for the majority of NFT trading volume since its launch in October 2022, accounting for 71.8% of the market share in March 2023.

Conclusion

The Q1 2023 crypto industry report highlights the growth of the cryptocurrency market, led by Bitcoin and DeFi protocols. Liquid staking governance tokens have also seen significant gains in market capitalization, and NFT trading volume has surged again. While stablecoins have seen a drop in market cap, Tether has strengthened its position as the largest stablecoin by market cap in 2023. Overall, the cryptocurrency market continues to show promising growth in 2023.

NFT Studio 24

NFTStudio24 is Japan's first media platform dedicated on reporting the latest news and insights in Web3, Blockchain, Cryptocurrency, Metaverse, NFTs, and Decentralization.

Share This Article
Follow:
NFTStudio24 is Japan's first media platform dedicated on reporting the latest news and insights in Web3, Blockchain, Cryptocurrency, Metaverse, NFTs, and Decentralization.
Leave a comment