The blockchain industry does not exist in a bubble. The impact of the economic turmoil in the rest of the world seems to be trampling the progress of the “blockchain revolution”. Traditional markets such as the S&P 500 index plunged more than 11.5% in September, while the tech-heavy Nasdaq 100 index plunged 12.5%. However, Bitcoin (BTC) may have seen a decoupling as it has only dropped 3% during this same period.
For some, these are signs that Bitcoin has bottomed out, but they do not necessarily mean that the market is going to take an immediate pullback. Are there any other positive signs that we can see on the charts?
Every month, Cointelegraph Research publishes an Investor Insights report that analyzes key indicators from different sectors of the blockchain industry. Indicators from 10 segments of the blockchain space—including regulation, cryptocurrency mining, security tokens, Bitcoin and Ether (ETH) derivatives, and venture capital (VC) activities—are analyzed by those working closely with the subject.
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bitcoin and beyond
Private equity is often a lagging indicator of market sentiment in traditional markets. In 2021, the blockchain space saw continued increases in capital inflows per quarter. In 2022, the first quarter continued this trend, while the second quarter began to show a slowdown in venture capital entering the space. However, in September there was an increase of 20.6% in the capital investment of venture capital companies in 93 operations throughout the month.
Web3 had the largest number of individual deals, with 31, bringing in $378.8 million, while Infrastructure had 29 deals and saw the most investment, with $913.6 million. This could be another indicator that the bottom of this bear market cycle has arrived.
The volume of security tokens grows
In September, the security token market capitalization grew by 6.27% to $18.7 billion, up from $17.6 billion. Volume also soared 19.76% from the previous month. The action within the security token markets is not the only positive, as the news that the Hong Kong government is encouraging the submission of security token proposals to the Securities and Futures Commission (SFC) is a good one. omen for the industry.
Although it may be an area of interest often neglected by the average blockchain investor, security tokens help demonstrate widespread adoption across different applications for the blockchain industry and could be a good indication of how all cryptocurrency markets are faring. In the near future.
The Cointelegraph Research Team
Cointelegraph’s research department is made up of some of the best talent in the blockchain industry. Bringing together academic rigor and filtered through hard-earned, practical experience, the team’s researchers are committed to bringing the most accurate and insightful content available on the market.
Dr. Demelza Hays is the director of research at Cointelegraph. Hays has assembled a team of subject matter experts from the fields of finance, economics and technology to provide the market with the leading source for industry reports and insightful analysis.. The team uses APIs from various sources to provide accurate and useful information and analysis.
With decades of combined experience in traditional finance, business, engineering, technology, and research, the Cointelegraph Research team is perfectly positioned to put their combined talents to good use with the Investor Insights Report.
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