Total trading volume on the 5 leading NFT marketplaces fell by -77% in the third quarter of 2022 as the sector firmly remains in ‘NFT winter,’ a CoinGecko report shows.
The Q3 2022 Cryptocurrency Report indicates that the sector continues to shed users, highlighting a generally bleak last 3 months for the crypto and blockchain sector.
Based on the report, the total market cap of the NFT sector has experienced a huge decline from as high as $13.5 billion in Q12022 to $2.1 billion in the third quarter.
OpenSea remains the leading marketplace but MagicEden is shown to be making gains in a top 5 that now includes:
- OpenSea
- LooksRare
- CryptoPunks
- MagicEden
- X2Y2
The largest NFT marketplace on Solana, MagicEden, was the only NFT marketplace that saw growth in September 2022, doubling its MoM volume and dominance while the rest of its competitors continued to slip. Growth is thought to have been boosted partly by the platform’s foray into Ethereum as dominance grew from 9% to 22% in Q3 2022.
At the same time, OpenSea dominance declined from 90% to 60%.
“September numbers show that ~85% of X2Y2’s volume potentially came from wash-trading, which would have given it the edge over OpenSea on the leaderboard. The same goes for LooksRare which, despite its already meager volume, is still apparently driven by ~87% wash trades.” – CoinGecko NFT Report
Overall, the crypto market cap rallied to $1.2 trillion in August 2022 before falling to around $900 billion. Market cap rose +6.5% or about ~$100B in Q3 2022, higher than at the end of Q2 2022.
Some notable moves within the Top 30 include:
- $XRP overtaking $BUSD at #6 (+60%)
- $MATIC moving from #19 to #15 (+66%)
- $UNI jumped from #27 to #18 (+129%)
Other stats from the report include:
- Total crypto market cap correlation with the S&P 500 was still high at 0.85 in Q3 2022, although this was a slight decrease from the previous quarter (0.92), the report says.
- Total crypto market cap correlation with the S&P 500 was still high at 0.85 in Q3 2022, although this was a slight decrease from the previous quarter (0.92).
- BTC outperformed major asset classes in Q3 2022 with only the Dollar index outperforming it in those 3 months. Still, the cryptocurrency has lost the most YTD, down 58%.
“Bitcoin dipped hand-in-hand with US equities, but managed to largely recover compared to the equities market, ending Q3 with only a -1% change in price.” – CoinGecko report
According to the report, $ETH saw a rally in early Q3 2022, though failing to break the $2,000 resistance. It peaked at $1,982 in mid-August 2022 before tumbling back down. It started to climb back up before the merge.
“Despite how the Merge was touted as the most bullish event for Ethereum, the upswing was brief.” – CoinGecko report
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