Just when we thought things get any stranger, Q3 hit us with some significant upturns. Most notable being massive political leadership changes, major fiat currencies crashing in value, huge inflation and soaring utility costs.
However, while all this was happening, crypto was making some positive moves.
Although Q1 and Q2 were tumultuous times for crypto markets, Q3 saw a few upturns demonstrating that crypto still has a long future ahead of it.
Estimates suggest that crypto trading volume increased by 16.63% QoQ despite being in a bear market.
While traditional bear markets can often cause hysteria, the crypto market is still in its infancy and often does the unexpected. So, it is no surprise that we have seen it perform differently from other markets during this recent period.
We saw bitcoin outperform most fiat currencies except the USDI (US dollar index), and an increase in value for Ethereum by 39% from the previous quarter.
If you’ve been reading any of our previous articles, you will know that we consistently predicted that crypto would rebound at some point, and without speaking too soon, it seems that we are beginning to see that light of the tunnel.
This article will look at crypto in Q3 of 2022 and highlight some of the significant changes.
Bitcoin
Despite all expectations, Bitcoin has outperformed major assets, including crude oil and gold.
Reports show that Bitcoin increased by 3.1% from last quarter, as well as an increase in trading volume of 206%.
Bitcoin’s growth reinforces the idea that it could one day replace gold due to its recent performance amid rising global inflation, with some experts even referring to Bitcoin as the new “haven asset”.
This will undoubtedly encourage investors to have faith and make further purchases to protect their assets should we see further economic turmoil.
Q3 also showed us that people are still using their Bitcoin to make everyday purchases, with transactions using Bitcoin rising by 22%, especially with companies like Shopify and Robinhood.
Although Bitcoin is still down from this time last year and the year before, this slight increase and stabilisation has sent shockwaves and shows that Bitcoin still has a promising future.
It's impossible to say when we will see value rates reach what they did in November 2019. However, this recent upturn suggests that Bitcoin still has a significant role to play in global investments and could even outperform its previous record in the near future.
Ethereum
Ethereum’s Merge has dominated crypto headlines for the past few weeks.
But what is The Merge?
It refers to Ethereum’s shift from “proof of work” mechanism to a “proof of stake” system. See our article about crypto concepts to learn more about their difference.
The merge was two-pronged and began on the 6th of September, an upgrade to the consensus layer, followed by the final shift to proof of stake.
The Merge has been in the works for nearly six years and comes at a perfect time when investors are looking for inspiration. One of the critical factors is a complete shift from a centralised permission-based network to one that is community driven and less ecologically harmful than traditional crypto mining.
With Ethereum’s proof of stake mechanism now in place, the previous proof of work system will no longer be in use. However, all past data relating to transactions and contracts will be moved to the new system should it ever be needed.
Ethereum has stated that this switch has reduced its energy consumption by 99.5%, making it the leader in green crypto trading.
If you’re reading this information for the first time and are wondering whether your existing Ethereum assets have been affected, do not worry. Ethereum has clarified that investors do not need to take any action and that no assets have been affected during this process.
In case you are still curious, you can read more about Ethereum 2.0 in our dedicated blog.
NFTs
Although Bitcoin and Ethereum saw some unexpected gains during the bullish third quarter of 2022, the same cannot be said of NFTs.
Reports show that NFT trading fell by 60% QoQ. While there is speculation as to why this happened, the leading causes seem to be central banks in the USA advising investors to remove risky assets as well as falling cryptocurrency values.
However, despite this recent downturn, big brands such as Apple, Starbucks and Reddit all announced NFT partnerships in an act that demonstrates faith in NFTs and their future in the crypto marketplace.
Apple
During Q3, Apple changed their guidelines on NFT trading, making it easier for users to access and purchase NFTs and allowing smaller NFT creators to gain more exposure.
However, users are subjected to Apple’s high fees while trading using the IOS system, which could dissuade investors from making in-app purchases. However, this change to in-app crypto trading certainly inspires confidence.
Starbucks
The new Starbucks Odyssey experience rewards its customers and investors with NFTs and aims to build a large online community for its loyal customers.
Starbucks seems to be embracing Web3.0 and appears happy to include crypto as a part of its future.
The new scheme is still very much in its infancy, so keep your eyes peeled to see how it performs.
Reddit
Reddit’s partnership with Polygon allows users to buy, sell and collect avatars based on the Reddit mascot, Snoo.
The spooky season collection, launched to coincide with Halloween, currently sits in 63rd place in most popular collections on Opensea, with Reddit to release more collectibles in the coming months.
Stablecoins
True to their name, stablecoins remained relatively stable during Q3 dropping only 2.5% in value, according to Token insights.
Owing largely to the strength of the US dollar at the end of Q3, USDT has performed best out of the stablecoins, rising by 2.41% from Q2 and still dominating 45% of the stablecoin market.
Economic turmoil is the true test of investments and makes it clear to see whether an asset has the strength to survive tough times.
Stablecoins are a reliable investment, so we recommend adding some stable coins to your wallet for any investor looking to diversify their investments.
At Nebeus, we offer a range of stablecoin investments, and we can advise you on which coins will be right for you.
Conclusion
To reiterate, while the global economy saw some major shifts in Q3, cryptocurrencies like Bitcoin and Ethereum saw some unexpected positive developments.
At Nebeus, we firmly believe that Bitcoin and Ethereum are here to stay and can survive harsh economic periods.
In addition, while at first glance, NFTs took a significant hit this quarter, at a closer look, some key events have inspired Investors.
The future is bright for crypto, and those who have weathered this problematic period will no doubt start to see rewards for their patience shortly.
Use cases have never been more remarkable, and we are constantly seeing crypto being integrated into daily life, from purchasing a coffee to buying a house.
Nebeus is a secure and reliable platform to buy, hold and transfer your investments. Sign up for a Nebeus account today.
La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.
