Binance Research‘s third-quarter market report ‘State of Crypto: Market Pulse’ offers an all-embracing analysis of the blockchain ecosystem, outlining multiple trends, along with their challenges and potentials. The report scrutinizes various aspects such as market performance, Layer 1 and 2 protocols, DeFi, NFTs, and gaming.
Despite a general decline in total market capitalization, Layer 1 activities, values locked in DeFi, and NFT volumes, the report finds several optimistic indicators.
The market witnessed robust institutional adoption amid falling prices. Web3 initiatives were announced by major entities like Deutsche Bank, Sony, Grab, and PayPal. Bitcoin (BTC) surged ahead with a 63.1% increase YTD, even as BTC ETF applications from traditional finance institutes continued to pour in.
Despite overall fewer active developers, projects such as Chainlink, Taiko, and Zora saw a quarter-on-quarter rise in weekly active developers. The report also highlighted infrastructure as the sector raising the peak funds YTD.
According to the quarterly report, BTC balances on exchanges saw a slight fall, a positive sign indicating long-term self-custody asset storage by investors. Ethereum’s average transaction fees fell, reaching US$4.80 in Q3, attributed to increased Layer 2 activities. Binance’s BNB Chain too saw a dip in average transaction fees, with PancakeSwap continuing as its dominant dApp.
In the DeFi space, liquid staking held the top spot, followed by lending, which showed a QoQ growth of 1.3% and surpassed DEXes to claim the second spot.
In the gaming arena, BNB Chain led the field with the highest number of games, with anticipation of maintaining the trend in Q4. The shift by Google to allow NFT integration in apps and games could further spur Web3 game development.
Finally, the report noted that out of the top five gaming tokens by market cap, three are related to the Metaverse, with The Sandbox ($SAND) leading the pack due to its strategic partnerships.