In accordance with a brand new report published by cryptocurrency knowledge aggregator CoinGecko, a number of attention-grabbing anomalies surfaced in cryptocurrency markets through the third quarter. Though the digital asset trade witnessed heavy sell-offs earlier this yr, its general market cap elevated by round $100 billion in comparison with Q2.

Whereas up to now, crypto bear markets have largely decoupled from inventory efficiency, cash and tokens traded virtually in actual tandem with the U.S. S&P 500 Index in Q3. The correlation coefficient, which ranges between 0 and 1, for the efficiency of the S&P500 versus cryptocurrencies stood at 0.85 within the stated time interval.

Moreover, regardless that Bitcoin’s worth noticed a 1% drop throughout Q3, it really outperformed each single asset class apart from the U.S. greenback Index, which measures the trade fee of a basket of foreign currency in comparison with the U.S. greenback. Throughout instances of financial uncertainty, buyers worldwide sometimes flood to safe-haven belongings such because the U.S. greenback and the Swiss franc. Nevertheless, stablecoins, that are principally pegged to the U.S. greenback, noticed their circulation plummet by $4.7 billion in Q3.

One issue behind the plunge seems to be that of the Workplace of Overseas Property Management’sOFAC’s sanction on cryptocurrency mixer Twister Money, which made it a felony offense for U.S.-based stablecoin issuers and customers to work together with the service.

Thirdly, complete market capitalization in decentralized finance, or DeFi, functions elevated by 31.3% quarter-over-quarter to $24.5 billion. There was a system-wide rebound throughout all verticals besides within the realm of asset administration. This didn’t come as a shock, as a number of months prior, the implosion of centralized finance corporations interacting with DeFi functions, reminiscent of Celsius and Three Arrows Capital, ignited a widespread bear market.

Lastly, the full buying and selling quantity of nonfungible tokens, or NFTs, noticed a 77.4% quarterly plunge from Q2 to Q3. On the similar time, the variety of wallets that ever owned an NFT increased by a staggering 1 million in Q3. Some within the crypto group have lately began to name the underside of the market turmoil.