Positive market growth amid global financial crisis ⋆ ZyCrypto
According to the Crypto Market Recap Q1 2023 report from CryptoRank, the first quarter of 2023 saw a positive start to the year, with the market growing rapidly and reaching pre-FTX crash levels. The market began to flourish with new projects, token sales, massive airdrops and an increase in investment activity in web3 with funds. However, CryptoRank highlights that issues were confronted during the quarter, with most issues arising from traditional finance rather than from the crypto market.
Global financial markets battled inflation, which could lead to a recession, posing a major threat to markets, including crypto, which remains an investment vehicle. On the other hand, according to CryptoRank, the banking crisis was a threat to financial stability. The macro picture is quite controversial and it is difficult to predict the performance of the crypto market under such conditions. But it is clear that the problems with the traditional financial system increased the use of crypto and trust in Bitcoin.
The report further points to Bitcoin’s role as the clear outperformer among the top-10 in Q1, but there were also a couple of notable top-100 projects. Solana showed growth of 109% in Q1, Lido had +134%, and Aptos showed an unprecedented 230% growth in the quarter. The list of winners is quite diverse and shows remarkable numbers this quarter. The DeFi sector is probably the best category in Q1, especially decentralized exchanges, and Layer 2 blockchain-based projects such as Arbitrum and Optimism outperformed others.
Crypto Market Recap Q1 2023 does not neglect the airdrop: the season has begun, which is a solid boost to the crypto market, attracting new users and retaining old ones. Blockchain infrastructure projects are primarily of interest to potential airdrops because they represent the backbone of crypto. The hunt for airdrops will probably mark a market upswing before a new bull run starts.
Moreover, the report emphasizes that DeFi started to recover along with the market growth. So far, DeFi has been the best category of Q1 overall, especially decentralized exchanges. Furthermore, projects based on Layer 2 blockchains, such as Arbitrum and Optimism, have performed better than others.
Summary of major events: in February, Blur, one of the largest NFT marketplaces, issued $300 million worth of tokens. This was the first major airdrop in a long time and was a great success. Blur became the largest NFT marketplace, surpassing OpenSea, and loyal users received not only a huge airdrop, but also many stimulating activities during the past few months to attract and retain new users. In March, Arbitrum announced its airdrop plan and the launch of The DAO, which quickly became the largest airdrop ever. ARB entered the top 50 and had a strong position on the list.
In summary, the Crypto Market Recap Q1 2023 report underlines the positive market growth amid the global financial crisis. Bitcoin performed better in the top 10 and DeFi started to recover along with the market growth. Airdrops have begun, which is a strong boost for the crypto market. Blockchain infrastructure projects are primarily of interest to potential airdrops because they represent the backbone of crypto. The hunt for airdrops will probably mark a market upswing before a new bull run starts.
