Ascending Trends: A Recap of Q1 2023 in the Crypto Market
The crypto market in 2023 is experiencing a renewed growth trajectory after the tumultuous lows of the previous year. The market is showcasing significant growth, with new projects, token sales, airdrops, and increased investment activity in Web3.
CryptoRank believes that the tough days of 2022’s market are in the past, thanks to the rapid growth in the first quarter of 2023, which is likened to the pace of the pre-FTX-crash era. However, the banking crisis posed a significant threat to the crypto markets, and the global financial market’s fight with inflation that could lead to a recession will also hurt crypto.
The challenges of TradFi could stimulate the adoption of crypto and trust in crypto.
The Q1 2023 recap includes the heralding of the bull market, the onset of the airdrop season, the comeback of DeFi, the trend towards Layer 2, the inclination towards fundraising, and the status of the NFT market.
Bitcoin and other notable top 100 projects were among the top ten performers in Q1. Solana made a head-turning comeback, while Lido and Aptos showed commendable numbers this quarter.
DeFi was one of the best-performing categories of Q1 overall, especially decentralized exchanges. Liquid staking, which is the key element of Proof-of-Stake networks, showed many benefits, and protocols based on Layer 2 saw a considerable increase in total value locked.
Trading volume of DEXs experienced an approximate 30% increase in the first quarter of 2023 after two quarters of decline. The DEX/CEX ratio has now increased to a level similar to November 2022.