Report: On-Chain Data Indicates Crypto Consolidation in Q3

DappRadar's latest quarterly report highlights a period of consolidation in the cryptocurrency ecosystem following a turbulent second quarter.< /p> A third quarter industry report from DappRadar citing on-chain metrics suggests that cryptocurrency markets are showing signs of recovery from ongoing buoyant market conditions.

A number of factors played their part in a busy third quarter of 2022, with the Ethereum merger marking a successful move to proof-of-stake having a notable influence on Layer 2 activity ahead of the event. The report also highlights a slight recovery in the overall cryptocurrency market cap, which is still below the $1 trillion mark.

The third quarter data reflected an 8.5% increase in total crypto market capitalization from July to the end of September 2022. The decentralized finance space also showed signs of consolidation, with total value locked ( TVL) in the space rising 2.9% in the third quarter to $69 billion. Ethereum continues to represent the bulk of TVL, with $48 billion locked up in smart contracts.

DappRadar also highlights a 12% increase in unique active wallets in the cryptocurrency ecosystem quarter over quarter, to 1.8 million. The blockchain gaming sector contributed significantly, with unique wallet addresses increasing by 8% from August to September.

ImmutableX saw its unique active wallets increase by 30% over the same period and saw 87% growth in trading volume of non-fungible NFT tokens compared to the previous quarter, while Polygon followed an similar trajectory, seeing its unique active portfolios increase by 17% to 148,000.

The number of non-fungible token (NFT) exchanges increased by 11% compared to the second quarter of 2022, while the volume of Ethereum NFT exchanges decreased by a wide margin of 76%. NFT transaction volume totaled $2.71 billion during the third quarter, still marking a significant decline of 67% from the second quarter of 2022.

Related: