Crypto data aggregator CoinMarketCap has released its report “According to CMC: Crypto Market Analysis H1 2023”.
Crypto data platform CoinMarketCap has shared its “According to CMC: Crypto Market Analysis H1 2023” report. In the report, the coin information site described the second quarter of 2023 as a “lost quarter” due to several factors, including the lack of a strong market narrative compared to the first quarter of the year. However, several areas experienced strong growth and resilience, according to the report.
Data on the crypto industry drew attention
According to the report, the first quarter of 2023 showed more positive developments such as Bitcoin. BTC doubling in price to $30,014, and the rise of tier 2 scaling solutions like Arbitrum and zero-knowledge proofs. In addition, Q1 also showed a strong nonfungible token (NFT) market driven by product updates and the issuance of the NFT market Blur token.
The data aggregator also noted that the second quarter “failed to produce” breakthrough developments. Despite trends suggesting that Q2 is a memecoin season and the popularity of the new BRC-20 token standard, CoinMarketCap argued that Q2 did not create the excitement that Q1 offered.
Despite that, the data company said some positive events occurred in the second quarter. This includes the Crypto Fear and Greed Index, which shows 52 points considered neutral, a metric aimed at demonstrating overall crypto market sentiment. This result is much better than the 32 points at the beginning of the year and indicates fear in the market.
While the market is challenging, CoinMarketCap noted that certain sectors showed resilience and growth in their YTD market capitalizations. These include virtual and augmented reality, which grew by 704 percent, artificial intelligence and big data, which grew by 323 percent. Meanwhile, its decentralized projects and infrastructure are starting to make a comeback. Lending and borrowing rose 149 percent, derivatives rose 75 percent, storage 86 percent and interoperability 58 percent, according to the data. Sectors such as virtual and augmented reality increased by 704 percent year-to-date, while artificial intelligence and big data increased by 323%.
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