In Q3, 2023, all participants of cryptocurrency markets received several messages, both inspiring and alarming. Blockchain analysts from CryptoRank, a top-tier research and data platform on Web3, published a recap of what happened in July-September 2023.
Crypto segment waiting for ETFs approval
The saga about the potential U.S. SEC approval of Bitcoin (BTC) and Ethereum (ETH) spot ETFs was the dominant catalyst of cryptocurrency processes in Q3, 2023. Traders, investors and analysts believe that these ETFs being greenlit can attract a new inflow of capital into major cryptocurrencies.
However, the U.S. regulator, the SEC, keeps its hostility toward new types of assets. Right now, the closest potential date of approval is lifted to Q1, 2024, but even this delay might not be the last one.
Bitcoin ETFs by BlackRock, Valkyrie, VanEck, Bitwise were the first to generate interest, but later Ethereum ETFs also became involved. In its Q3 report, CryptoRank refers to spot instruments, while futures ETFs are already being traded in the U.S. and are still struggling.
However, the authors of the report opined that the consequences of an increase in such instruments are not yet clear. Currently, the market does not have a unified stance on whether this or that company has purchased Bitcoins or not.
SocialFi, Telegram bots: Newest trends
Even in this turbulent context, new types of applications gain traction. The launch of the Base blockchain backed by the largest U.S. exchange Coinbase was truly remarkable. CryptoRank's focus shifted to the most intriguing application on Base, friend.tech.
Unfortunately, the majority of activity on friend.tech consists of snipers and traders. Currently, this app is primarily used for earning, such as trading keys or farming airdrop points, and much less for socializing.
Friend.tech initiated the trend of social apps, which was then followed by fork clones on Arbitrum, Avalanche and other blockchains. While these clones make the concept more convenient, they do not address the underlying issue: For most users, they are simply a means of making money in a frictionless market.
Crypto-related Telegram bots inspired yet another wave of interest in crypto. The introduction of Telegram bots for crypto has made working with various dApps more convenient. Unibot was the pioneer in this industry, making trading through the Telegram interface possible. As a result, developers seized the opportunity to create similar applications and earn money through commissions and token sales.
However, the concept is still in its early stages and not flawless. Some projects have been vulnerable to exploits, and others have experienced failed launches. Nevertheless, users have embraced the Real Yield concept, which allows token stakers to receive a portion of trading commissions without the risks associated with liquidity pools.
Crypto fundraising stagnates, but sentiment remains positive
CoinRank's latest report demonstrated that token sales are currently going through a challenging period. The decrease in trading activity has had a significant impact on token sales. As expected, raised amounts during the summer months were at a very low level. Despite the substantial increase in raises in September compared to August, it is difficult to observe any positive change: the yield of token sales remains low.
However, there are still robust Launchpads in the market that continue to launch strong projects. Binance Launchpad, in particular, stands out as a leader and recently had the most profitable IEO (Initial Exchange Offering) of the quarter with Arkham. Despite the market slowdown, Binance Launchpad has already demonstrated multiple successful project launches in 2023. Considering the exchange's scale and influence, CryptoRank researchers anticipate more successful launches in the future.
Tomiwabold Olajide
Godfrey Benjamin
