Crypto Market Analysis: Virtual Reality Soars 704%, AI & Big Data Expand 323%

Posted on by

• CoinMarketCap released its “According to CMC: Crypto Market Analysis H1 2023” report in which it described the second quarter of 2023 as a “lost quarter” due to several factors.
• Several areas experienced strong growth and resilience, including virtual and augmented reality showing 704% growth, with artificial intelligence and big data showing 323% growth.
• The Crypto Fear & Greed Index showed a score of 52, which is considered neutral compared to its score of 32 at the start of the year, indicating fear in the market.

CoinMarketCap Report on Q2 2023

Described as Lost Quarter

CoinMarketCap recently released its “According to CMC: Crypto Market Analysis H1 2023” report. Within the report, the coin information website described the second quarter of 2023 as a “lost quarter” due to several factors, including the lack of a strong market narrative compared to the first quarter of the year. Despite this, some areas showed strong growth and resilience in their year-to-date (YTD) market capitalizations.

Notable Sectors

Virtual and augmented reality soared 704% in YTD growth, while artificial intelligence and big data expanded 323%. Decentralized finance projects and infrastructure also made a comeback with lending and borrowing increased by 149%, derivatives increased by 75%, storage increased by 86%, and interoperability increased by 58%.

Crypto Fear & Greed Index

The Crypto Fear & Greed Index — a metric that aims to illustrate overall crypto market sentiment — showed a score of 52 during Q2 which is considered neutral. This result is much better than its score of 32 at the start of the year, indicating fear in the market.

Memecoin Season

Q2 was dubbed as memecoin season for its popularity among investors but failed to produce groundbreaking developments compared to Q1 which saw Bitcoin (BTC) doubling in price plus other positive developments such as layer-two scaling solutions like Arbitrum and zero-knowledge proofs plus NFT marketplace Blur’s token issuance.

Conclusion

Despite not being able to match up with what Q1 delivered, CoinMarketCap reported that some positive events did still occur during Q3 including an improved Crypto Fear & Greed Index score indicating improved market sentiment over time plus notable sectors that have shown strong growth such as virtual/augmented reality (+704%), AI/big data (+323%) etc..