Crypto Market Grows 50% YTD Despite Q1 Crisis: CMC Report
- In Q1, investors fled to BTC and ETH, propelling their prices by 42% and 27%.
- The collapse of Silicon Valley Bank triggered volatility in March.
CoinMarketCap took to Twitter to observe that the global crypto market has seen significant growth in the first quarter of 2023, with a current market cap of $1.185 trillion, a 50% increase year-to-date (YTD), and a 24-hour trading volume of $48 billion, up 137% YTD.
This data was captured by the popular market tracking platform CoinMarketCap, in its recent report on global crypto market trends for the first quarter of this year. According to the study, the market has experienced sideways action for the most part. However, the volatility of March was triggered by the collapse of Silicon Valley Bank (SVB).
CoinMarketCap noted that the SVB crisis caused the USDC stablecoin to lose its $1 peg, causing yield aggregator, gambling, and lending sectors to lose market capitalization. The event also prompted investors to flee to safer assets, driving a rush to Bitcoin (BTC) and Ethereum (ETH), propelling their prices by 42% and 27%, respectively.
Additionally, the crypto world saw a surge in interest in AI tokens following the AI narrative from OpenAI’s ChatGPT launch. Notable coins in this sector include AGIX, which has seen a YTD increase of 857%, and FET, with a 313% YTD. Others, such as AGIX, OCEAN, and NMR, also had a three-digit percentage increase.
Furthermore, interest in Collectibles and NFTs increased in the first quarter of 2023 than 2022 Q3 and Q4, which DeFi dominated. Meanwhile, DeFi saw significant interest in Q1 2023 due to Terra Classic following the extermination of 48.5 billion LUNC tokens out of a total supply of 5.9 trillion.