Original source: CoinGecko

Compiled by: Shenchao TechFlow

A new year brings new beginnings, as the cryptocurrency market wakes up from its late 2022 hibernation and emerges from the bear market, growing by 48.9% from a total market capitalization of $831.8 billion on January 1, 2023, to March 2023 $1.238 trillion on the 31st.

While the rally was not without its difficulties, it reversed previous losses caused by the FTX crash and brought the market back to its pre-Ethereum merger highs. Bitcoin (BTC) and Ethereum (ETH) prices are now hovering around $30,000 and $2,000 respectively, with BTC performing particularly well, up nearly 72% this quarter.

CoinGecko's Q1 2023 Crypto Industry Report covers the crypto market landscape, as well as analysis of Bitcoin and Ethereum, delves into the decentralized finance (DeFi) and non-fungible token (NFT) ecosystem, and reviews the center The performance of centralized exchanges (CEX) and decentralized exchanges (DEX).

1. The cryptocurrency market started the year strong, with gains of 48.9% and a total market capitalization of $1.2 trillion

The crypto market got off to a strong start in 2023, ending the first quarter with a total crypto market cap of $1.2 trillion. This represents an increase of 48.9% in absolute terms, resulting in absolute gains of $406 billion compared to the year-end 2022 performance of $829 billion.

Meanwhile, average daily trading volume has also picked up, growing 30% quarter-on-quarter, from -33% in Q4 2022 to $77 billion in Q1 2023. Trading volumes picked up in January 2023, temporarily spiked in early March due to increased volatility due to the banking crisis, but gradually fell back in late March after Binance removed its zero-fee trading incentives for BTC.

2. Bitcoin outperforms traditional asset classes, rising 72.4%

Bitcoin was the best-performing asset in the first quarter of 2023, with a quarter-on-quarter increase of 72.4%, followed by the Nasdaq (15.7%) and gold (8.4%).

With the exception of crude oil, which fell 6.1%, all major asset classes ended the quarter with gains. This result is not surprising, as crude oil is one of only two assets to rise in 2022. Crude oil initially fell to -17.2% as U.S. inflation reports cited lower oil demand, coupled with the fallout from the U.S. banking crisis, but managed to recoup some losses towards the end of March.

The U.S. Dollar Index (DXY), along with other fiat currencies, has remained relatively flat during the same period due to lower-than-expected inflation data.

3. Stablecoins lost $6.2 billion, down 4.5%, with USDC and BUSD suffering the largest declines

The market capitalization of the top 15 stablecoins fell by 4.5% ($6.2 billion) due to the Paxos spinoff of Binance USD (BUSD) and the decoupling of USD Coin (USDC) during the SVB collapse.

USDT, the largest stablecoin, further solidified its position, increasing its market capitalization by 20.5% ($13.6 billion). In comparison, USDC and BUSD lost 26.9% and 54.5% respectively, wiping out their 2022 gains.

Meanwhile, True USD (TUSD) entered the top 5, surpassing FRAX. Binance minted $130 million in TUSD, while Tron minted another $750 million, boosting its market capitalization by 169.3%. In terms of stablecoins outside the top five, GUSD and USDP are down 32.0% and 12.3% respectively.

4. The DeFi ecosystem grew by 65.2% to reach $29.6 billion, and the liquidity staking sector grew by 210.9%

The market cap of the decentralized finance (DeFi) space surged 65.2% in the first quarter of 2023, equivalent to a growth of $29.6 billion, driven primarily by the performance of liquidity-staking governance tokens.

The liquidity-staking governance token saw its market capitalization increase by 210.9% in the first quarter following the Ethereum Shapella upgrade. It has now surpassed lending protocols to become the third largest category in DeFi.

Despite growing its market capitalization by 44.3% in Q1 2023, decentralized exchange (DEX) governance tokens are still losing market share and are down -5% since January.

5. NFT trading volume rebounds to $4.5 billion, Blur surpasses OpenSea to become top NFT market

Non-fungible token (NFT) trading volume has increased significantly, rising 68% from $2.1 billion in the fourth quarter of 2022 to $4.5 billion in the first quarter of 2023.

The majority of NFT trading volume comes from Blur, a new NFT platform launched in October 2022. Within six months, it has overtaken former market leader OpenSea, growing its market share from 52.8% in December 2022 to 71.8% in March 2023, and now dominates the top 6 NFT markets. Meanwhile, OpenSea's market share shrank from 29.3% to 21.7% over the same period.

While most blockchains saw an increase in transaction volume in the first quarter, Solana’s ecosystem gradually declined. Trading volume on Magic Eden, the largest market on the chain, fell from $73.9 million in December 2022 to $23.6 million in March 2023, a drop of 67.9%. Well-known NFTs y00ts and DeGods also migrated to other chains, further damaging Solana.

6. Cryptocurrency spot trading volume increased 18.1% in the first quarter to $2.8 trillion, and DEX’s quarterly growth exceeded that of CEX

In the first quarter of 2023, spot trading volume on the top ten cryptocurrency exchanges totaled $2.8 trillion, an increase of 18.1% compared to the fourth quarter of 2022. Monthly transaction volumes have been on an upward trend since December 2022’s lows of $0.5 trillion. However, monthly trading volumes have yet to reach an average of $1 trillion, a figure last seen in the first half of 2022.

Amid a crackdown on centralized exchanges (CEX) by global regulators, decentralized exchanges (DEX) are growing almost twice as fast as CEX. In the first quarter of 2023, DEX grew by 33.4%, while CEX grew by 16.9%. Despite this, the ratio of CEX to DEX trading volume remained above 90% during the same period.

(The above content is excerpted and reprinted with the authorization of partner MarsBit, original text link | Source: BitpushNews)

Statement: The article only represents the author's personal views and opinions, and does not represent the objective views and positions of the blockchain. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.

This article CoinGecko 2023 Q1 Report: Has the Cryptocurrency Market Picked Up? First appeared in Block Guest.