Q3 2023 Crypto Market Sector Snapshot

Q3 2023 crypto market sector snapshot

Research reports

This is our Q3 2023 crypto market sector snapshot, a report from our Sygnum investment research. 

In the third quarter, user growth experienced significant changes within the crypto landscape. The recently introduced Layer 2 platform, Base, made a notable entrance, swiftly capturing a substantial market share and emerging as one of the top Layer 2 platforms in terms of Total Value Locked (TVL) and transaction volume. Meanwhile, the TVL in tokenised treasuries continued its impressive ascent, surging by 17 percent during Q3 and marking an astonishing 500 percent increase since the start of the year. Even more intriguingly, traded volumes of the recently launched friend.tech social tokens managed to outpace the trading volumes of Non-Fungible Tokens (NFTs) on certain days, underlining the dynamic nature of this evolving sector.

Performance across different crypto sectors in Q3 displayed divergent trends. The Web3 sector stole the spotlight, driven by robust fundamental dynamics, an upswing in user engagement for AI-linked projects, and a renewed enthusiasm for decentralised social media platforms. In contrast, the Layer 2 sector faced challenges, despite continuing positive trends in user growth and sector fundamentals. This underperformance was partly due to significant token unlocks for key projects, which, however, now leaves the sector relatively undervalued. The gaming and metaverse sectors continued to grapple with subdued user activity and limited developments, hinting at the need for further innovation and engagement to revive these segments.

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This document is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.

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Disclaimer: This content is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.

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