Q2 2023: CoinMarketCap’s Report on the ‘Lost Quarter’

Q2 2023: A “Lost Quarter” For Crypto

CoinMarketCap’s “According to CMC: Crypto Market Analysis H1 2023” report 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. While some areas experienced strong growth and resilience, the data aggregator noted that the quarter “failed to produce” groundbreaking developments.

In contrast, Q1 2023 was marked by positive developments, such as Bitcoin (BTC) doubling in price, the rise of layer-2 scaling solutions like Arbitrum and zero-knowledge proofs, and the emergence of the nonfungible token (NFT) market driven by product updates and the issuance of Blur’s token.

The Crypto Fear & Greed Index — a metric that aims to illustrate overall crypto market sentiment — showed a score of 52 in Q2, indicating neutrality. This result is much better than its score of 32 at the start of the year, indicating fear in the market. Despite this, the data company said Q2 simply did not generate the excitement that Q1 delivered.

Virtual and Augmented Reality Showing Resilience and Growth

Despite the market’s challenges, CoinMarketCap reported that certain sectors displayed remarkable resilience and growth in their YTD market capitalizations. These include virtual and augmented reality, which have seen a 704% growth, as well as artificial intelligence and big data, which have seen a 323% increase.

Moreover, decentralized finance projects and infrastructure have started to regain their momentum. According to the data, lending and borrowing have grown by 149%, derivatives by 75%, storage by 86%, and interoperability by 58%.

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