The cryptocurrency market has been in a downturn tagged the bear season. This is characterized by a continuous decline in the price value of tokens. While the market faces such a challenge, some sectors are moving above the tide showing remarkable growth in terms of market cap YTD- Year to date.
According to a Coinmarketcap (CMC) YTD report, the top five sectors of the market with notable growth include Virtual reality (VR/AR), Artificial intelligence (AI) and Big data, Lending and borrowing, Storage, and Derivatives.
The Virtual Reality (VR) sector takes the top spot with a staggering 704% change in market cap. Close behind is AI & Big Data, experiencing a significant 323% increase.
Additionally, three other sectors are driving the market narrative. These include blue-chip DeFi projects and Infrastructure, such as Lending & Borrowing, Derivatives, Storage, and Interoperability. Lending and borrowing witnessed a market cap change of 149%, while Derivatives and Storage experienced growth below 100%.
In terms of progressive growth from Q1 to Q2, VR/AR outperformed other sectors in the top five categories. However, its 24-hour market cap and trade volume remain lower compared to the other sectors.
Moreover, there are several other sectors experiencing significant growth in terms of market capitalization year-to-date (YTD). These include Gaming, the Ethereum ecosystem, Collectibles and NFTs, and Distributed Computers. While these sectors may not be at the top of the list, they have a higher 24-hour trade volume and market cap. Additionally, they boast a considerable number of listed crypto tokens.
Furthermore, the Memes sector has seen the highest activity in terms of new listings, with over 260 new coins added YTD. The AI & Big Data sector ranks second, adding 61 coins, followed by DeFi at No.3 with 47 new listings YTD.
According to the CMC report, the Memes sector also experienced a substantial increase in views between April and May. This spike can be attributed to the “memecoin season” led by PEPE. Similarly, the launch of ChatGPT resulted in increased views for the AI and Big Data sector.
Despite Pepe leading the meme buzz in the first half of the year, previous memecoins such as DOGE, SHIB, and BabyDoge have maintained their top positions in the CMC rank for most viewed coins.
While closing with a similar total market cap, the crypto market in the first quarter had a strong narrative compared to the second quarter. Q1 saw developments like an increase in Bitcoin price, the rise of L2 solutions, and an active NFT market. On the other hand, Q2 witnessed trends such as the “memecoin season” and BRC20 tokens, but it didn’t match the momentum of Q1.
Ultimately, the global crypto market cap saw a 48% year-to-date (YTD) increase, reaching $1.17 trillion by the end of Q2. Additionally, according to the CMC report, the Crypto Fear and Greed Index closed at 52 (Neutral), compared to its starting point of approximately 30 (Fear), indicating a notable improvement in market sentiment.
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