After three months of the third quarter of 2021, the cryptocurrency market place has had a marked adjust from the former time period. Many new trends and potentials seem, generating the market place additional diversified and producing a solid development momentum. Let’s consider a appear at the cryptocurrency market place in Q3 with Kyros Ventures with this report.
one. Bitcoin overview in the third quarter of 2021
Bitcoin (BTC) Price Movement
After a time period of decline in the 2nd quarter, the cryptocurrency market place in basic and Bitcoin in specific in the third quarter had solid recovery phases and witnessed a good deal of intriguing information linked to the legal corridor of government nations.
In terms of value, in accordance to the Coinbase chart, immediately after a more powerful correction of fifty five% from the all-time substantial of $ 64,800 in the 2nd quarter, the value of Bitcoin in July continued to fall to a very low of $ 28,800 ahead of recovering. Since mid-July, BTC has had eight consecutive weeks of gains totaling 81.eleven%, ahead of hitting a peak of practically $ 53,000 in early September and a regular correction over $ 43,000, 25.03%. additional than at the starting of the quarter.
The final quarter marked quite a few vital milestones in the historical past of Bitcoin and cryptocurrency (Figure one):
– July: The SEC continually releases a good deal of legal statements relating to Bitcoin and the cryptocurrency market place.
– two/eight: The German government altered the law, enabling some organizations to retail outlet up to twenty% of crypto assets on their stability sheets.
– eleven/eight: Recommendations for the Infrastructure bundle (Infrastructure account) accepted by the US Senate with unfavorable and unclear provisions on the taxation of persons and organizations linked to cryptocurrencies.
– seven/9: El Salvador’s bitcoin law comes into impact: bitcoin “pillars” exceed $ 52,000. The upcoming day, the country’s president announced that he had a reserve of 350 BTC. Subsequently, El Salvador continued to “buy the fund” for a different 150 BTC.
– September 24: China has announced a ban on cryptocurrency trading and mining. Many cryptocurrency platforms are “escaping” the nation one particular by one particular. China’s legal developments with BTC are described in Figure two.
Institutions that accept Bitcoin
Beyond the curiosity of lawmakers, Bitcoin and cryptocurrencies carry on to be supported by quite a few massive organizations and businesses (Figure three).
At the finish of the third quarter, Grayscale Bitcoin Trust nevertheless held 654,855 BTC, which represents three.twelve% of the complete provide of Bitcoin. Many of the main US wealth management money obtain entry to Bitcoin by means of Grayscale’s GBTC, this kind of as Morgan Stanley. Hay three/eight money of the US enterprise Global have invested additional than 566,389 USD in GBTC shares.
MicroStrategy and Michael Saylor continued to acquire BTC, incorporating five,050 to the complete of 114,042 BTC the enterprise is stocking. (Figure four).
The trio of CoinShares, Tesla and Square display no indications of obtaining additional BTC in the third quarter.
In addition, quite a few massive businesses and support suppliers see the chance and are beginning to adapt to meet the desires of shoppers utilizing cryptocurrencies.
BTC reserves on exchanges have plummeted
At the finish of the third quarter, the percentage of features that have not altered their portfolio tackle for at least the final three months reached an all-time substantial of 84.87%.
After the promote-off that lasted from mid-April to mid-July, the quantity of BTC on the stock exchange suffered a “supply shock” and showed no indications of recovery. BTC reserves on the exchange fell to as very low as two,457,417 BTC (equivalent to eleven.seven% of complete provide) in the previous three many years on September 28th.
Meanwhile, the quantity of very low-liquidity, off-exchange BTCs has elevated drastically more than the previous three months. Based on Figure seven, we can see a correlation among the two indicators and the value of BTC more than the previous 18 months.
two. Overview of Ethereum in the third quarter of 2021
London rigid fork and EIP-1559
Q3 marked an vital milestone in the evolution of Ethereum with the London tricky fork and many proposed updates. Among them, EIP-1559 is the most notable update with a proposed reform of transaction costs primarily based on network density and a proposal to burn up element of the transaction costs to assist Ethereum’s giving steadily move in direction of deflation. As of October one, a complete of 409,669 ETH has been burned (Figure eight).
The ETH value recovered strongly ahead of the London tricky fork and swiftly returned to the $ four,000 degree. In addition, quite a few network metrics also noticed considerable adjustments in the third quarter this kind of as the locked worth (TVL), the quantity of wallets, the volume of ETH two. staked and the normal gasoline tariff. (Figure 9).
Panorama of layer two and the Arbitrum explosion
Layer two option on the Ethereum network in the third quarter (Figure ten) noticed a big explosion of the Arbitrum title when the Arbitrum mainnet officially launched in early September. During this quarter, Arbitrum acquired $ 120 million in investments from quite a few massive money and reached a worth of $ one.eight billion .locked (TVL) immediately after four days of mainnet launch.
three. Outstanding trends in the third quarter of 2021
GameFi (brief for Game Finance is a mixture of Gaming and DeFi) has not too long ago turn out to be one particular of the most significant trends in the market place and has turn out to be a craze for blockchain-primarily based video games to turn out to be preferred, entice traders and gamers from the classic video games market place.
Axie Infinity is the “new” mania of the Blockchain Game village. In July alone, Axie Infinity posted practically $ 200 million in income, sixteen instances its June income, and assisted expand cumulative income by one,050%. In the identical month, Axie’s market place capitalization elevated from $ 315 million to practically $ two.four billion. The explosion of this main game has assisted a quantity of other blockchain video games on the market place to have massive capitalization development.
According to the statistics of Token terminal, Axie Infinity’s complete income in the previous third quarter was near to $ 800 million, an enhance of practically five,000% more than the 2nd quarter of $ sixteen million and has turn out to be the highest-income game and DApp nowadays. on the market place. (Figure eleven). Axie Infinity’s NFT business enterprise recorded trading volume of $ one.eight billion in the third quarter, up additional than one,400% from the $ 118 million in the 2nd quarter (information from DappRadar). With the accomplishment of Axie Infinity (AXS), gamers have had a total new appear at Blockchain gaming, primarily with the Play-to-Earn (P2E) type of perform.
In the early phases, most of the video games have been created on the Ethereum blockchain. There are quite a few profitable tasks and they entice quite a few gamers this kind of as Axie Infinity, Decentraland, The Sandbox, Sorare, X World Games, and so on. (Figure twelve)
However, in the third quarter, Binance Smart Chain (BSC) grew to become a vivid spot when quite a few new gaming tasks chose to construct on this platform. BSC video games like CryptoBlades, MyDefiPet, Faraland or Mobox have attracted a good deal of focus not too long ago. (Figure 13).
A common late July occasion Binance Smart Chain noticed a three-4x enhance in each day trading volume more than the former time period, largely thanks to the growth of GameFi tasks, most notably CryptoBlades. CryptoBlades’ seven-day transaction count hit 9.23 million all-around mid-August, the highest score of all video games. Additionally, CryptoBlades ranks 2nd in the quantity of thirty-day consumers of all tokenized video games, 2nd Dapp.
In addition to Ethereum, BSC, Polygon is also a title that attracts a good deal of focus in the GameFi planet when it comes to gamingHo launched Polygon Studios to serve the Game & NFT ecosystem in the 2nd quarter. Recently, quite a few NFT game tasks are and will be created on the Polygon network. Furthermore, WAX, Enjin or Flow are also blockchains which are attracting quite a few gaming tasks.
It has been predicted quite a few instances that NFT will turn out to be a big trend in the cryptocurrency market place and that prediction truly came in the third quarter. August recorded a record volume of NFT trading, reaching $ five.two billion. . Followed by September, it also hit a staggering $ four billion. As a consequence, complete NFT trading volume reached more than $ ten.67 billion in the third quarter, up 704% from the former quarter. (Figure 14).
OpenSea is the 1st NFT Marketplace to cross the $ one billion mark in trading volume. In the third quarter, the complete volume of NFT trading on Opensea reached $ seven.four billion, representing more than 70% of the market place share. Behind Opensea is Rarible, registering 73.three million bucks, SuperRare is third with 66.six million bucks. (Figure 15).
GameFi trends contributed drastically to the general development of the NFT market place, in-game NFT assets recorded a trading volume of $ two.three billion in the third quarter. Also, the most significant contributor, not to mention digital collections or NFT avatars.
Typical of which is the CryptoPunks assortment. In the third quarter, CryptoPunk’s trading volume reached somewhere around 360,000 ETH (equivalent to $ one.three billion), an enhance of practically 400% from 75,000 ETH in the 2nd quarter. On peak days in early September, the minimal value for a CryptoPunk NFT is all-around $ 465,000 (information from Analysis of the dunes). Many cryptopunks traded for hundreds of thousands of bucks in the third quarter (Figure sixteen).
In addition to CryptoPunks, the Bored Ape Yacht Club (BAYC) “ape” assortment has also turn out to be really preferred. At its peak on August 28, BAYC’s each day trading volume reached $ 53 million.
Also, quite a few NFT collections contributed to the third trimester fever this kind of as: Meebits, Pudgy Penguin, …