Binance Research releases “Q3 State of Crypto: Market Pulse” report.

Binance Research has released the ‘Q3 State of Crypto: Market Pulse’ report: its column that delves into the various activities of the blockchain ecosystem over the past quarter. 

Binance and the ‘Q3 State of Crypto: Market Pulse’ report, which takes an in-depth look at the crypto market

Binance Research, the market research arm of Binance, has released its quarterly “Market Pulse” report that delves into the various activities of the blockchain ecosystem. 

Specifically, last quarter’s report is titled “Q3 State of Crypto: Market Pulse”. 

Here is the announcement on X, formerly Twitter: 

“Our latest State of Cryptocurrency report summarises all the key insights, events and learnings from Q3. Find out everything you need to know about developments in the sector, including analysis of: Layer 1 and 2, DeFi, NFT, Gaming.”

In essence, the new ‘Q3 State of Crypto: Market Pulse’ covered a wide range of topics related to blockchain and crypto, including market trends, layers 1 and 2, DeFi, NFTs and gaming.

As an overview of the crypto market, Binance Research highlighted the 8.6% drop in total crypto capitalisation in the last quarter of 2023 compared to the previous quarter. 

Despite this, it appears that adoption by large corporations has increased, with the likes of Deutsche Bank, Sony, Grab and PayPal all announcing their involvement in Web3 initiatives.

Binance Research: The report also sheds light on the situation in Layer 1 and 2, DeFi, NFT and Gaming 

To be more specific, the Q3 State of Crypto: Market Pulse report also highlighted a decline in Layer 1 activity, total value locked (or TVL) in DeFi and the NFT market. However, this has not dampened optimism, thanks to new industry openings and developments. 

And indeed, while Layer 1 activity has generally declined, Ethereum’s Layer 2 activity has shown signs of recovery, with the launch of Base boosting transaction activity.

Speaking of Coinbase’s Base, the report said:

“Base rose through the ranks in Q3

● Activity on Base has surged since its launch in August, driven by a successful marketing campaign, memecoin trading and the popularity of friend.tech.

● On the other hand, Arbitrum and Optimism have both seen a decline

in TVL in Q3.”

On DeFi, TVL appears to have decreased by 13.1% from the previous quarter to $38.5 billion. This could be attributed to low DeFi yields, the risk-off environment and falling ETH prices.

NFTs also recorded their worst sales quarter in almost three years with sales of $299 million. This can be attributed to the drop in base prices of most collections and the price of ETH.

Finally, looking at gaming, the blockchain leaders this quarter appear to be BNB Chain, Ethereum and Polygon. Not only that, but in general, blockchain-based games seem to have reached a market share of around 66% (by number of games).

The latest news on the most popular crypto exchange

Looking at the latest news on Binance, the most popular crypto exchange, it seems that it is not doing so well on the issue of ‘regulation’. 

And indeed, it seems that in Brazil, the Congressional Commission has proposed indicting Binance’s CEO, Changpeng CZ Zhao, and other local crypto exchange executives. The charges would be fraud and other financial crimes, such as, once again, the sale of unauthorised securities. 

Indeed, the Brazilian institutions’ suspicion of Binance arises precisely because it is not always recognised as compliant in many other jurisdictions. 

Instead, by moving to the UK, Binance has had to take a step back to comply with the country’s evolving regulatory landscape. In practice, the crypto exchange has reportedly decided to stop accepting new UK users in order to comply with regulations. 

Finally, the US version of Binance, Binance.US, which is apparently not even owned by the better-known crypto exchange, has had to suspend fiat currency (USD) withdrawals from its platform. 

Binance.US has been in trouble with the US authorities for some time, resulting in a sharp drop in its daily spot market trading volumes, which have reached USD 20 million.