According to the Crypto Market Recap Q1 2023 report by CryptoRank, Q1 2023 saw a positive start to the year, with the market growing rapidly and reaching pre-FTX-crash levels. The market began to blossom with new projects, token sales, massive airdrops, and an increase in investment activity in web3 by funds. However, CryptoRank highlights that problems were confronted during the quarter, with most issues arising from traditional finance rather than from within the crypto market.
The global financial markets were fighting inflation, which could lead to a recession, posing a big threat to the markets, including crypto, which is still an investment instrument. On the other hand, according to CryptoRank, the banking crisis was a threat to financial stability. The macro picture is quite controversial, and it is difficult to predict the crypto market’s performance in such conditions. But it is evident that the problems of the traditional financial system increased the adoption of crypto and trust in Bitcoin.
The report further points out Bitcoin’s role as the obvious outperformer among the top-10 in Q1, but there were also a couple of notable top-100 projects. Solana showed a 109% gain in Q1, Lido had +134%, and Aptos showed an outstanding 230% growth in the quarter. The gainers’ list is quite diverse and shows remarkable numbers this quarter. The DeFi sector is probably the best-performing category of Q1, especially decentralized exchanges, and Layer 2 blockchain-based projects such as Arbitrum and Optimism performed better than others.
Crypto Market Recap Q1 2023 does not neglect the airdrop: its season has begun, which is a solid boost to the crypto market, attracting new users and retaining old ones. Blockchain infrastructure projects are primarily of interest to potential airdrops because they represent the backbone of crypto. The hunt for airdrops will probably mark a market recovery before a new bull run begins.
Moreover, the report stresses that DeFi began recovering along with the market growth. So far, DeFi has been the best-performing category of Q1 overall, especially decentralized exchanges. Furthermore, projects based on Layer 2 blockchains, such as Arbitrum and Optimism, have performed better than others.
Recapping major events: in February, Blur, one of the biggest NFT marketplaces, airdropped about $300 million worth of tokens. This was the first big airdrop in a long time and was a huge success. Blur became the largest NFT marketplace, surpassing OpenSea, and loyal users received not only a huge airdrop but also many incentivizing activities during the past months to attract and retain new users. In March, Arbitrum announced the airdrop plan and launch of the DAO, which quickly became the biggest airdrop ever. ARB got into the top 50 and held a strong position in the chart.
In summary, the Crypto Market Recap Q1 2023 report emphasises the positive market growth amid the global financial crisis. Bitcoin outperformed among the top 10, and DeFi began recovering along with the market growth. Airdrops have begun, which is a strong boost to the crypto market. Blockchain infrastructure projects are primarily of interest to potential airdrops because they represent the backbone of crypto. The hunt for airdrops will probably mark a market recovery before a new bull run begins.