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Cryptocurrency Market Overview
Q3 was a relatively stable quarter for Bitcoin. It stayed above $10,000 for most of Q3, then experienced a sharp fall of 17.6% in the last week of September. Overall, Bitcoin ended the quarter down 24%, having started at $10,888, and ended at $8,271.
Although Bitcoin suffered a 24% fall in price in Q3, other cryptocurrencies experienced larger falls. Among the top five cryptocurrencies by market capitalization, Ethereum fell 39%, XRP fell 36%, Bitcoin Cash fell 43%, and Litecoin fell 54%.
Overall market capitalization decreased by 29.1% or nearly $100 billion.
Bitcoin saw its market dominance increase from 65.0% to 70.4% (+5.4%) amongst the top 30 cryptocurrencies. Stablecoins saw its market dominance and market capitalization rank increase in Q3 as well.
Other Highlights from the CoinGecko Quarter 3 Report
- 300% Growth in Derivatives Exchanges
This past quarter, the crypto industry experienced rapid growth in the derivatives sector. On CoinGecko, there was a 300% increase in the number of derivatives exchanges tracked, from 6 exchanges to 17 exchanges.
Binance, the largest spot exchange by trading volume, is also now involved in the derivatives market. It launched Binance Futures and acquired JEX, a small derivatives exchange.In this report, CoinGecko has included a “Derivatives for Dummies” section – an introductory and entertaining guide that will educate you on this complex subject.
The section covers basic topics such as futures, options, and perpetual swaps, as well as provides a glossary for advanced topics.
- DeFi Industry Overview
Over the past year, the DeFi (Decentralized Finance) space has shown strong growth. Within the span of one year, the amount of ether locked in smart contracts to power DeFi has tripled to approximately 2.9 million.With the aim of creating a more efficient money market, DeFi has seen strong growth in the types of applications coming on board.
The most popular applications in the DeFi space are in the lending, derivatives, decentralized exchanges (DEX), and payment services. This report explores selected projects showcasing the use case of DeFi such as MakerDAO, Compound, Set Protocol, Synthetix, bZx Protocol, and Akropolis.
- CoinGecko Releases “Trust Score 2.0”
In May 2019, CoinGecko launched Trust Score to provide additional insights into crypto exchanges’ real liquidity through order book and web traffic analysis. This was necessary to combat exchanges’ fake volume and to improve transparency amongst cryptocurrency exchanges.
Building upon the success of this, CoinGecko developed Trust Score 2.0, which incorporates additional metrics and is bucketed into five major categories: liquidity, API technical coverage, scale of operations, cryptocurrency reserves, and regulatory compliance.
You can check out the full report here.