The value of mainstream cryptocurrency prices fell in September

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The value of mainstream cryptocurrency prices fell in September

In May, mainstream cryptocurrency prices fell in May and the industry's total value locked TVL fell below $90 billion due to the impact of national policies in several countries. After the mid-year selloff, the crypto market once again saw an even tougher policy challenge in September, with several countries stepping in to introduce various regulations.

To see the month s most important data visualized, see this Footprint Dashboard.

The price of BTC and ETH has a strong effect on all tokens except stablecoins.

From the data in the chart, it can be seen that the introduction of the relevant policies in September did not have the same impact on the prices of BTC and ETH as it did in May BTC fell from $58,000 to $35,000 and ETH fell from $4,200 to $2,000 with BTC holding above $40,000 and ETH maintained a level above $3,000. The price of the coins did not fluctuate and the overall cryptocurrency market tended to be stable.

DeFi had a TVL of $182.2 billion at the end of September, up 7.2% from the previous month.

Compared to August, TVL in September was buoyant, topping $190 billion at the beginning of the month, a record high for the year. Although TVL declined slightly in mid and late September to varying degrees, even falling below $170 billion, the extent of the decline and the duration of the effect was far less than the impact of the policy change in May.

Older blockchains are slow to develop, but new ones are bursting on the scene.

According to data provided by Footprint, the TVL and market share of TVL for Ethereum and Binance Smart Chain in September were gradually reduced by emerging blockchains.

On the other hand, emerging blockchains are gaining momentum. Solana is the main example and ranked 5th in blockchains in August with $3.33 billion TVL and was already 3rd in September with $9.79 billion this chain had surpassed $12 billion in mid-September Avalanche, which has grown as a result of liquidity mining, is also doing well, ranking 6th on the public chain with $3.68 billion.

With the introduction of Korea s policy to shut down two-thirds of cryptocurrency exchanges, the development of Terra, which is based in Korea, suffered somewhat in September, dropping it from third to fourth place overall in the blockchain rankings, with its TVL growing by just 14.1%. For comparison, Avalanche grew by 193.9% and Solana by 74.41%.

New blockchains show promise as they see rapid growth.

The highest TVL growth rate was recorded by Arbitrum, which is part of Layer 2. With lower transaction fees and faster transaction speeds compared to Ethereum, Arbitrum has attracted an influx of funds and project owners Curve and SushiSwap are now online with a growth rate of 856,323. 64% TVL from a little over $100,000 to $1.3 billion it not only stood out on top of the growth rate of many blockchains, but also came out among the many Layer 2 projects.

It was followed by OKExChain, which seized the opportunity to develop an infrastructure conducive to the development of GameFi and launched the GameFi Hackathon, attracting many projects to go live on the chain and achieving a growth rate of 3,470. Moonriver came third with a growth rate of 2,195. 26% with $220 million in the same month. It has both the cross-chain advantages of the Polkadot ecosystem and strong compatibility with Layer 1, which provides a better experience for developers and users.

As in August, DEX, lending and yield were the top three DeFi market share categories. DEX occupies the first place with 30.55%, although there was a 0.34% decrease in the share compared to last month. However, with large centralized exchanges like Binance and Huobi affected by restrictive policies in certain countries, more trading volume and funds have flowed into DEXs, thereby increasing the TVL of this category by $3.61 billion.

The lending category, on the other hand, has been affected by the decline of token prices. It not only increased the amount of funds involved in the lending business, but also reduced the risk of liquidation of originally borrowed funds, so the TVL of the lending category is down compared to August, and although it continues to maintain the second position, its percentage of market share has dropped by 2.63%.

Yield came in third with TVL of $30.34 billion representing 16.65% of the market share and the highest TVL growth of any category with an 18.74% increase compared to the previous month. The most prominent contributors were Convex Finance $7.93 billion and Yearn Finance $4.69 billion The impact of the government regulations in September on the crypto market was not significant. After significant volatility in May, the crypto market had a certain immunity to the changes in policies and it continued to develop with good resilience and tension.

Emerging blockchains are gaining momentum, and those that have already stood out are expected to reach new heights next month, while those that have yet to emerge will also sprout one after another. For the emerging blockchains that are slow in development, as their carrying capacity increases, congestion will become more and more serious and their position will gradually be overtaken by the old blockchains.

None DEX aggregator 1 Inch begins restricting to US users, aiming to pave the way for the launch of compliance product 1 inch Pro 30th Sep None India s largest bank SBI bans crypto exchanges from using its UPI to collect payments 15th Sep None Russia s central bank advises banks to block cards and wallets used to trade with cryptocurrency exchanges 15th Sep None Two-thirds of Korea s crypto exchanges to close in September 13 rd Sep This was a guest post brought to