Q3 saw significant crypto market recovery from May crash, says new report

Cryptocurrency data aggregator CoinGecko has released its Q3 2021 report that shows massive gains across several segments of the crypto market.

After the market crash in May, the third quarter of the decline began in the low-term of the crypto space, with the market capitalization dropping further in late July to below $1.2 trillion, less than half the all-time high of $2.5 trillion recorded just two months ago. .

However, the market capitalization rebounded in the third quarter, rising to $2.3 trillion in early September.

According to a CoinGecko report, Bitcoin (BTC), gaming “coins” and non-perishable tokens (NFTs) dominated the crypto market space in the third quarter.

Bitcoin recorded a 25% increase between Q2 and Q3 and continued on this upward trajectory, reaching $60,000 for the first time in five months.

Network hashrate also saw a rebound in the third quarter, indicating a recovery from China’s sweeping crackdown that has forced miners to move abroad.

Gaming icons like Axie Infinity (AXS), Illuvium (ILV), and Gala (GALA), as well as the NFT space in general, posted massive gains in the third quarter as well.

AXS, in particular, returned nearly 1,000% quarterly gains, with its 2021 performance coming in at 13,700%.

In terms of NFT trading volume, OpenSea continued to dominate the market segment. In fact, OpenSea and Rarible recorded total trading volume of about $6.8 billion in the third quarter, according to a CoinGecko report.

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These significant market gains also came on the back of a storm of regulatory concerns related to cryptocurrencies. It appears that US policy makers have been lobbying with calls for stricter regulations surrounding market sectors such as stablecoins.

Despite the steady gains recorded in the third quarter, the recovery of the cryptocurrency market is still far from the levels of activity seen before the May crash.

For example, CoinGecko reported that spot trading volume across major central and decentralized exchanges fell more than 42% in the third quarter.