According to Coingecko’s latest crypto industry report, in the first quarter of 2023, bitcoin was the best performing asset with its US dollar value rising from just under $17,000 observed on December 31, 2022 to just over $28,000 by March 31, to just over $28,000 by March 31, 2023, making it the best performing asset, according to the report. The report attributes the resurgence in crypto assets to “increased volatility due to the banking crisis” and Binance’s decision to end part of its zero commission incentive scheme for bitcoin transactions.
Bitcoin outperformed the Nasdaq index and gold
After trading below $17,000 for the past year, bitcoin made a comeback in the first quarter (Q1) of 2023, trading above $28,000. This performance has allowed bitcoin, which eventually crossed the $30,000 level, to outperform major asset classes such as the Nasdaq index and gold, data from the latest Coingecko Crypto Industry Report shows. As noted in the
reportBitcoin’s quarter-over-quarter (QoQ) growth rate of 72.4% made it the best performing asset during the period. The Nasdaq index and gold were the second and third best performers, up 15.7% and 8.4%, respectively.
The recovery in bitcoin and the crypto market as a whole is known to have begun sometime in January, but according to the report, the US banking crisis may be the main reason for the surge in interest in this asset class.
“Trading volumes showed an uptick in January 2023, when the market began to rise. It then spiked briefly in early March due to increased volatility caused by the banking crisis and tapered off in late March when Binance removed some of its zero commission trading incentives,BTCthe Coingecko report says.
coins that stabilized in the first quarter stalled
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As for stabled coins, the market capitalization of this asset class reportedly declined by 4.5%, or $6.5 billion.” Due to the suspension of Binance USD (BUSD) by Paxos and a brief USD coin (USDC) de-pegging event at the time of SVB’s collapse.”
Meanwhile, Coingecko’s report also reveals that the market capitalization of decentralized finance (defi) surged 65.2% to end the first quarter at $29.6 billion. The value of liquid staking governance tokens increased 210.9% in the first quarter, making it “defi’s third largest category.”
During the same period, trading volume on non-fiat tokens (NFT) platforms also increased from $2.1 billion to $4.5 billion in the final quarter of 2022. According to the report, the majority of these transaction volumes came from Blur, which recently took Opensea’s place as the most dominant NFT platform.
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