Decrease in Trading Volume and Interest in NFTs: CoinGecko Report on Crypto Market Dynamics
Date: 2023-10-25 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Cryptocurrency Market Experiencing Period of Instability
In recent months, the cryptocurrency market has undergone significant changes, as reflected in the CoinGecko report. From July to September, the capitalization of cryptocurrencies decreased by 10%, which is a notable decline. However, over the course of the year, the market still showed a 35% growth, indicating its overall dynamism.
Experts have highlighted a crucial event in mid-August when the price of Bitcoin sharply dropped from $28,000 to $25,000. This occurred due to limited liquidity on cryptocurrency exchanges. This temporary factor had an impact on the overall volume of the digital asset market, which decreased from $1.2 trillion to $1.1 trillion. It is worth noting that despite the absence of significant news on that particular day, traders chose to reduce their activity.
Descending Trend in NFTs and Key Players in the Market
The second significant point in the CoinGecko report is the descending trend in the NFT segment. NFT trading volume declined by 55.6%, signifying a significant decrease in interest in this technology. Several months ago, NFTs were in the spotlight, but it now appears that their popularity is waning.
Nevertheless, it should be noted that the list of the top 7 dominant coins in the cryptocurrency market has remained almost unchanged. Bitcoin still holds the leading position with a 47% share, followed by ETH (18%), USDT (7.5%), BNB (3%), Ripple (2.5%), USDC (2.2%), and Solana (0.8%).
Cryptocurrency Market Retrospective
For a better understanding of the current market situation, let's take a look at its retrospective. Since the beginning of the year, the cryptocurrency market has demonstrated impressive growth, increasing by 35%. However, the period from July to September was characterized by a 10% decline in capitalization, which may indicate some instability.
The decrease in trading volume and interest in NFTs also adds complexity to this diverse market. However, the cryptocurrency market has always been known for its instability and fluctuations. This could be a temporary phenomenon, and investors continue to monitor the dynamics, as crypto worlds remain one of the most exciting and rapidly evolving segments of the global financial ecosystem.
