The capitalization of the cryptocurrency market fell by 9%

The analytical platform CoinMarketCap has published a report on trends in the cryptocurrency and other digital assets market in the third quarter of 2023. The total capitalization of the crypto market fell by 8.56% at the end of the third quarter.

At the time of writing, this figure is about $ 1.09 trillion. Market liquidity has been gradually declining in the last quarter, and the total volume of spot trading on the 15 largest centralized exchanges fell by 30.59%. However, the drop in capitalization did not affect the previously achieved results, and the total amount of assets circulating on the market is still 34.95% higher than at the beginning of the year.

CoinMarketCap experts note that compared to the second quarter, the market has shown several strong areas for growth. The most positive dynamics were observed in the tokenized real-world applications (RWAs), artificial intelligence, oracles, media platforms, and crypto lending sectors. The researchers noted that in the third quarter, market sentiment shifted toward fear, and the greed index dropped from 60 to 42 points.

According to crypto experts at CoinMarketCap, several events negatively affected the behavior of market participants. Among them: the sideways movement of the BTC $98,735.18 Bitcoin 1.51% Market capitalization $1.95 trillion VOL. 24 hours $4.96 billion price throughout the third quarter, the Curve Finance hack, the subsequent cascading effect on the DeFi sector, and general macroeconomic uncertainty amid the sale of FTX assets.

As a reminder, Charlie Munger, a well-known American investor, attorney, and economist, has once again spoken out against investing in digital assets. The expert said that these are «foolish investments» as «most cryptocurrencies will fall to zero.» The investor also noted that the field of artificial intelligence attracts too much attention. Munger acknowledged significant breakthroughs in this area, but in his opinion, the hype around AI is too great.