CoinGecko analysts note trend of recovery in the cryptocurrency market

The cryptocurrency market is recovering after May’s price plunge, the DeFi sector has gained a new lease on life thanks to projects such as Avalanche and Solana, and the OpenSea marketplace has monopolised the NFT segment. These conclusions are contained in CoinGecko’s Q3 2021 report.

The combined market capitalisation of the 30 largest cryptocurrencies rose by 31% over the period. Meanwhile, trading volume fell by 47% compared with Q2 2021. Analysts say this points to the market entering an accumulation phase.

According to CoinGecko, in August Bitcoin managed to reverse its negative trend and ultimately rose above $50,000. Experts noted that, despite the shift in trend, trading volume for the leading cryptocurrency remains quite low.

The Ethereum ecosystem continues to dominate. In September it accounted for 76% of total DeFi TVL. Yet younger projects are gradually reclaiming share: in August it stood at 79%, in July 80%.

The top tokens of centralized exchanges (CEX) posted positive returns in Q3. A similar pattern is observed among the top five native assets of decentralized exchanges (DEX).

Among CEXs, the best performer was FTX Token (FTT) from the FTX exchange. For the period, its return stood at 87%. In the DEX segment, PancakeSwap (CAKE) leads on this measure, with a quarterly return of 36%.

The chart leader was the GameFi segment. In Q3, the Axie Infinity (AXS) token yielded 965%, year-to-date 13,783%. Behind it were Gala (GALA) and Illuvium (ILV) — their three-month returns were 1,051% and 599% respectively.

CoinGecko noted that NFT trading volumes reached record levels. For the quarter, the combined volume of the OpenSea and Rarible marketplaces amounted to $6.8 billion, with 99% of this volume accounted for by the former.

“One reason for OpenSea’s success is that it is the home of Art Blocks, which enjoys great popularity among artists in the field of generative art. The reality is that all NFT marketplaces are losing ground to this giant,” the analysts said.

In September, analysts from DappRadar noted that users of dapps switched from DeFi to NFT and GameFi.

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