The third quarter of 2023 brought a mixed bag of trends in the cryptocurrency market. While the broader financial landscape grappled with inflation and interest rate decisions, the crypto world saw a resurgence in specific sectors. The newest Bitget Research report delves into the key trends that defined Q3 2023, from the revival of memecoins to the growth of social finance (SocialFi) and the ongoing legal battles involving the Securities and Exchange Commission (SEC) and FTX.
Finance Magnates discussed the state of the cryptocurrency industry with Gracy Chen, the Managing Director at Bitget. Chen emphasized: "The crypto landscape is evolving rapidly, and many new developments are shaping its future in exciting ways."
The Memecoins Are Back
Memecoins, often criticized for their volatility and lack of fundamental value, made a strong comeback this quarter, Bitget Research finds. The split within the Pepecoin team acted as a catalyst, leading to the rise of new projects like CATECOIN, CAL, OXY, DORKL, and PAPA. Interestingly, some memecoins like POGAI have established themselves, particularly in Chinese-speaking regions, by branching out into GameFi.
The memecoin trend was further fueled by the advent of crypto trading bots on Telegram. Banana Gun, a Telegram bot, introduced a "sniper" feature that automatically targets newly listed memecoins with "anti-rug" properties. This innovation has not only elevated the market share of crypto telegram bots but also caught the attention of centralized exchanges.
REWORK OF TELEGRAM BOTWe've reworked our Telegram bot. Obviously, as we use the Telegram platform we are bound by Telegram limits and UX. Still, we managed to improve our bot a great deal!What did we do????? Reworked flow onboarding/buy/sell bot???? Added transfer eth/token… pic.twitter.com/LYsOK3Xh3T
— Banana Gun ???????? (@BananaGunBot) October 9, 2023
SocialFi Gains Traction
SocialFi, a Web3-based alternative to traditional social media platforms, saw significant growth, especially in East Asia and India. Projects like XCAD Network, Avive Profile NFTs, and Post.tech Profile have gained considerable user bases. TinyTap, an 11-year-old decentralized educational startup, recently secured $10 million at Global Educators Fund after its acquisition by Animoca Brands.
SocialFI aims to blend the worlds of social media and decentralized finance. This innovative approach allows users to have complete control over the creation and ownership of social media platforms as well as the content they generate.
⚡️TOP 10 #SocialFi dApps by Users Activity (30d) 9 October 2023Let's take a look at the top 10 social-fi #dApps, based on users' activity over the past 30 days, according to the @DappRadar. $GAL #DMAIL #FriendTech $HOOK $XCAD #Lens pic.twitter.com/sIRl3FXuV9
— ???????? CryptoDep #StandWithUkraine ???????? (@Crypto_Dep) October 9, 2023
What sets SocialFi apart is its ability to tokenize social influence, essentially combining the monetization strategies of platforms like YouTube with the principles of decentralization. This model paves the way for a fully monetized social media ecosystem where all participants, from content creators to consumers, have equal opportunities.
Legal Battles: SEC and FTX
The quarter also witnessed legal developments that could have long-term implications for the crypto market. FTX was finally granted permission to liquidate its asset holdings of $3.4 billion to repay its users. Meanwhile, the SEC has faced setbacks in its attempts to regulate Bitcoin ETFs. The US court supported Grayscale's filing, and several other spot ETF proposals are under review.
????BREAKING: FTX GETS APPROVAL TO DUMP $3.4 BILLION WORTH OF #CRYPTO! $SOL: $1,160,000,000$BTC: $560,000,000$ETH: $192,000,000$APT: $137,000,000$XRP: $119,000,000$BIT: $49,000,000$STG: $46,000,000 pic.twitter.com/jjt3ejdoUA
— Crypto Rover (@rovercrc) September 13, 2023
"In Q3, we witnessed a pivotal trend in the cryptocurrency space – the relentless pursuit of traditional asset management giants to launch spot BTC ETFs. Names like BlackRock, Fidelity, Franklin Templeton, Valkyrie, Bitwise, and VanEck are at the forefront of this movement," Chen commented.
Just a few weeks ago, the relationship between the US House Financial Services Committee and the SECintensified. This followed the Committee's Chairman Representative Patrick McHenry, hint at the possibility of issuing a subpoena to the SEC. The aim is to obtain crucial documents related to Sam Bankman-Fried, the former CEO of FTX.
McHenry criticized the SEC's Chairman, Gary Gensler for allegedly hindering the growth of the digital asset sector while lacking transparency in the agency's interactions with Congress. This discord can be traced back to February when McHenry first led the committee in requesting documents that detailed communications between the SEC's staff and the Justice Department regarding the charges raised against Sam Bankman-Fried.
Crypto Market in Q4 2024
The third quarter of 2023 was a period of both challenges and opportunities for the crypto market. While the broader financial landscape remains uncertain, specific sectors within the crypto world are showing signs of revival and growth. As we move into the final quarter, these trends could serve as indicators of what lies ahead in the cryptocurrency landscape.
"Looking forward to Q4, one development that piques my interest is the Ethereum Cancun upgrade. This upgrade has the potential to significantly boost the performance of Ethereum's Layer 2 blockchains. As a result, we can anticipate a surge in the usage of DApps built on Layer 2 ecosystems," Chen concluded.
???? #Infinimos is closely monitoring Ethereum's Cancun upgrade! Thanks to the EIP-4844 protocol, we're anticipating a 10-100x reduction in Layer2 transaction costs. The innovative approach of Danksharding is on the horizon, and we're at the forefront of this transformation! pic.twitter.com/2dYiR9wt59
— Infinimos (@infinimos) October 10, 2023
When it comes to cryptocurrency asset valuations, the end of the year is historically the best time for them. October itself is seasonally a month where BTC and other crypto assets experience their strongest growth.
This article was written by Damian Chmiel at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments