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CryptoCompare Asset Report – October 2022: BTC Volatility Hits Yearly Low In October

In October, the performance of digital and traditional assets was mixed. Ethereum was one of the best performers of the month with an 18.4% return, while BTC rose 5.49% after breaking a $20,000 resistance level. Not all fared well, however, with ADA and SOL experiencing negative results of 6.71% and 0.93%.

On the macro side, the S&P 500 and NASDAQ prices increased by 5.26% and 1.56% respectively, signaling slight stability within the macro environment.

Download the full report for further insight into the digital asset industry.

Key takeaways:

  • Monthly volatility saw a sharp decline in October, recording a yearly low volatility for most cryptocurrencies. Bitcoin recorded a monthly volatility of 32.2%, a figure that was lower than the S&P500 and NASDAQ’s recorded volatility for the same period.
  • Mining firms have been heavily selling their underlying holdings, leading to significant net outflows over the last six months. In October alone, Bitcoin mining companies recorded net flows of -7056 BTC.
  • Despite the macro environment, October was a positive month for Ethereum, particularly after two major events. First, Ethereum developers announced the launch of “Shandong”; a testnet for the next Ethereum upgrade. Second, Google Cloud announced the launch of Cloud-Based node services for Ethereum. Following the announcements, ETH’s price increased from $1,311 at the start of the month to $1,527 at the end.
  • TVL across the DeFi space has been hard hit so far this year, mainly as a result of declining prices. Importantly, TVL is also decreasing in SOL terms, suggesting market participants are withdrawing SOL from the ecosystem for other opportunities. TVL has declined 19.9% ​​decline from 60.9mn SOL to 48.8mn SOL.

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Public Miners Capitulation: A New Contagion Risk?
Bitcoin mining companies have struggled this year, with the fall in the price of the largest cryptocurrency and rising energy prices (and operating costs) leading to a decline in revenue. As a result, mining firms have been heavily selling their underlying holdings, leading to significant net outflows over the last six months. In October alone, Bitcoin mining companies recorded net flows of -7056 BTC.

BTC Miner Flows and Performance of Public Mining Companies,
Q2 – Oct 2022


ETH outperforms in October
ETH’s price increased from $1,311 at the start of the month to $1,527 at month end – a 19.9% ​​increase, outperforming other assets covered in this report including S&P500, NASDAQ 100, Gold, and Bitcoin. In addition, volumes have seen an increase of 20.8%, reaching $3.43 trillion across all exchanges.

ETH Outperforming All Asset Classes

CC_Fig_2_11Nov22.jpg

Solana TVL Continues To Decline, Even in SOL Terms
TVL across the DeFi space has been hard hit so far this year, mainly as a result of declining prices. The chart illustrates the decline in TVL in USD terms in the Solana ecosystem – down 85.9% in the first 10 months of the year.

Importantly, TVL is also decreasing in SOL terms, suggesting market participants are withdrawing SOL from the ecosystem for other opportunities. October saw the largest monthly decline in TVL in SOL terms so far this year – a 19.9% ​​decline from 60.9mn SOL to 48.8mn SOL.

Solana Ecosystem TVL, 2022

CC_Fig_3_11Nov22.jpg

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