After several months of headwinds for the crypto space, the historic collapse of Sam Bankman-Fried crypto exchange FTX in early November fueled the fire of the bear market. While the collapse of FTX has negatively impacted many industry players, the true extent of collateral damage from this debacle is only beginning to emerge.
The bearish trend in the crypto market coincided with a gloomy macro environment, which continued to weigh on stocks, crypto, and more, making it difficult to anticipate what lies ahead. However, on-chain data can help identify signals amid the noise by providing evidence of trends in network usage and demand. In Kraken Intelligence’s latest on-chain summary, Bleeding Out, the team investigates what happened between October 15 and November 13.
Crypto Market Cap
Total crypto market capitalization has taken a big hit this year, dropping over $1.5 trillion year-to-date (YTD) (-63%). The last 30 days were no exception as the crypto market continued to bleed, dropping $82 billion (-9%). ETH and DOGE took center stage, seeing the biggest increases in market share between October 15 and November 13 and seeing an increase in network demand across multiple on-chain metrics.
While BTC market share has fallen the most within the group, the leading crypto-asset has seen demand on the network increase over the past month. Namely, BTC has seen increases in transaction fees, active addresses, and number of transactions. DOGE outperformed the group over the past 30 days in terms of transaction fees and volume and saw an increase in active addresses. Thanks to Elon Musk’s latest endorsements of the meme coin and the acquisition of Twitter, DOGE’s recent performance has made it the top performer since the start of the year for market share and number of transactions. ETH made a comeback after seeing a downward trend after The Merge on September 15th.
USDT continued to lose market share to competing stablecoins. USDT saw the most redemptions of any centralized issuer in 2022. After Binance consolidated holdings of USDC, USDP, and TUSD on its platforms into its native stablecoin, BUSD’s supply of Binance saw an increase of $2.1 billion last month – the largest nominal increase among the stablecoins analyzed.
Want to know more about the channel activity over the past month and what to expect? Read Kraken Intelligence’s report, Bleeding Out, in which the team explores the fundamentals of crypto and the on-chain data that shaped the market.
These materials are for general informational purposes only and do not constitute investment advice or a recommendation or solicitation to buy, sell or hold any crypto-asset or to engage in any specific trading strategy. . Some crypto products and markets are unregulated and you may not be protected by government indemnities and/or regulatory protection schemes. The unpredictable nature of crypto-asset markets can lead to loss of funds. Tax may be due on any return and/or increase in value of your crypto-assets and you should seek independent advice on your tax position.