No, the financial crisis has not wiped out the crypto market

Despite regulatory pressure and the threat of an impending economic recession, the crypto market is showing exceptional resilience.

Contrary to popular belief, external factors such as the US banking crisis and regulatory moves against digital assets have not slowed the growth of the crypto market. At least that’s what a new report from CoinMetrics reveals.

Crypto market more resilient than ever?

To analyze the market situation, CoinMetrics used an assessment tool called Datonomy. The latter makes it possible to analyze historical data and “evaluate the ecosystem and its underlying trends from a broader objective”, the platform explains.

“After five very turbulent months, the crypto market is showing impressive resilience. This despite all the difficulties encountered”.

To further its analysis, CoinMetrics has divided the crypto market into several sub-sectors and several asset classes.

Market Cap by Crypto Asset Category: CoinMetrics

As the chart above shows, all sub-sectors of the digital asset market have advanced this year. According to CoinMetrics, the pace of industry growth is expected to accelerate over the next few years.

“Blockchain applications using smart contract platforms and solutions 🌐 Layer 2 is at a relatively early stage compared to other more mature sectors”.

However, the report notes that the volatility and volume of investment and 💻 trading have decreased significantly since the start of the year.

Despite a 42% increase in the market cap of the crypto market, the market has been quite bearish over the past two and a half months. Since the start of the year, spot trading volume has fallen by 50%, reaching a low of $20 billion.

Trading volume for different digital asset classes: CoinMetrics

However, note that despite the market’s downward trend, the market value has not fallen below the peak of the last bull cycle.

As a result, CoinMetrics believes that the crypto industry continues to grow despite the obstacles that stand in its way.

Crypto market players have truly understood that 🐻 bear markets are a time of development, improvement and growth.

Bitcoin and Ethereum dive into the red

After losing 2.1% of its market capitalization, the crypto market slipped back into the red on Thursday, June 1st. As of this writing, the market cap does not exceed $1.17 trillion.

₿ Bitcoin, the world’s first cryptocurrency, is trading at $26,900, while 🪙 Ethereum is trading at $1863.

Moral of the story: After the rain comes good weather.


Disclaimer: In accordance with the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent information. This article aims to provide accurate and relevant information. However, we encourage readers to check the facts on their own and seek professional advice before making any decision based on this content.

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