Binance – Market Pulse, Q3 23

Binance Research's Market Pulse for the third quarter of 2023 provides insights into the current state of the crypto market. It highlights that although the market faced challenges, such as an 8.6% decline in total crypto market capitalization, institutional adoption continued to grow. In terms of Layer 1 and Layer 2 platforms, activity on Layer 1s decreased overall. However, Ethereum Layer 2s experienced a revival in transaction activity due to the launch of Base. The report also focuses on the decentralized finance (DeFi) sector, which saw a 13.1% decline in total value locked (TVL) to $38.5 billion. This decrease can be attributed to low DeFi yields, a risk-off environment, and a decline in the price of Ethereum. Regarding non-fungible tokens (NFTs), the third quarter of 2023 marked the lowest sales in nearly three years, with only $299 million in sales. This decline can be attributed to the decrease in floor prices of most NFT collections and the price of Ethereum. Lastly, in the gaming sector, BNB Chain, Ethereum, and Polygon dominated the market, holding around 66% market share in terms of the number of games available. Overall, the third quarter of 2023 presented challenges for the crypto market but also showcased signs of growth and development in institutional adoption and certain sectors like Ethereum Layer 2s and gaming.