Although the May Crackdown rattled the crypto market, the report of the third quarter shows that the crypto market has since incurred significant gains.
The crypto market crash that happened earlier this year in May affected the third quarter in the beginning. The crypto market cap took a dive just under $1.2 trillion, which was considerably lower than the ATH of $2.5 trillion that was reached 2 months before.
Nonetheless, the crypto market cap rebounded in the third quarter, reaching a $2.3 trillion high in September, where the majority of the market was led by Bitcoin (BTC), gaming coins, and NFTs.
Bitcoin (BTC) marked a surge of 25% between the second and third quarters while maintaining a steady increase and reaching 60k.
Q3 brought about the revival of the hashrate after the surge in mining difficulty when the relocation wave of miners was happening after the China crackdown.
Huge gains were acquired by gaming tokens such as Axie Infinity (AXS), Illuvium (ILV), and Gala (GALA), along with the rest of the NFTs. Axie Infinity (AXS) had a performance top of 13,700% where the returned quarter-on-quarter earnings of nearly 1,000%.
OpenSea and Rarible were heading the NFT trading volume where in total the trading volume of the two amounted to roughly $6.8 billion in the third quarter.
These large market gains were also accompanied by a barrage of regulatory issues concerning crypto. Policymakers in the United States appear to have exerted pressure by calling for tougher regulations on market segments such as stablecoins.
Even though the improvements in Q3 are a refreshing achievement in terms of proving the resilience of the crypto market, it still has a long way to go to match the performance that was severely impacted by the crackdown back in May.
Due to strict crypto regulations enforced in many countries, the centralized and decentralized exchanges took a 42% dive in the third quarter.
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