- Crypto underwent a huge loss in Q3 worth $428,718,083.
- The Q3 loss is 36% down from Q2 and 62.9% down from Q1.
- The value of all cryptocurrencies had fallen from $3 trillion in November to nearly $967 billion this year.
Crypto space has been reported to have huge losses in the third quarter, worth $428,718,083 when compared to the first and second quarters of the year. The Q3 loss is reportedly 36% down from $670,698,280 in Q2 and 62.9% down from $1,155,334,775 in Q1.
Notably, the quarterly performance of crypto was found to be worse compared to the other asset classes. The huge losses encountered by the crypto stemmed from inflation fears and the central bank’s decision to hike interest, together with the high degree of leverage and poor risk compliance from major crypto firms.
Additionally, several rigid macroeconomic conditions, geopolitical tensions, and dubious projects by crypto companies had also become a reason for the ultimate crypto losses.
Apparently, much of these losses were rooted in the cross-chain messaging protocol Nomad and the crypto market maker Wintermute, representing almost 80% of Q3 losses. Nomad lost $190 million whereas Wintermute lost $160 million.
Since the first quarter of the year, the prices of most of the cryptocurrencies began dropping. Most of the crypto companies had been facing serious financial insecurities including bankruptcies. Rayhaneh Sharif-Askary, head of investor relations at Grayscale Investments, commented that “generally speaking, it’s a period of sustained lower prices”.
The value of all the cryptocurrencies had fallen from over $3 trillion in November 2021 to $967 billion this year. Starting with the stunning fall of Terra blockchain in May 2022, all the cryptocurrencies began falling down.
Bitcoin had fallen more than 70% down from its record high of $69,000 in November 2021. Alongside bitcoin (BTC), other currencies such as Ether (ETH), Solana (SOL), Cardano (ADA), and Binance Coin (BNB) are all in depletion.