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Crypto data aggregator CoinMarketCap has released its \u201cAccording to CMC: Crypto Market Analysis H1 2023\u201d 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. A few areas, however, experienced strong growth and resilience, the report notes.<\/p>\n
Accordingly<\/a> to the report, Q1 2023 showed more positive developments, such as Bitcoin (BTC<\/a>) doubling in price and the rise of layer-2 scaling solutions like Arbitrum and zero-knowledge proofs. In addition, Q1 also showed a strong nonfungible tokens (NFTs)<\/a> market that was driven by product updates and the issuance of NFT marketplace Blur’s token. <\/p>\n The data aggregator also noted that Q2 “failed to produce” groundbreaking developments. Despite trends that showed Q2 to be a memecoin season and the popularity of the new BRC-20 token standard, CoinMarketCap argued that Q2 simply did not generate the excitement that Q1 delivered. <\/p>\n Despite this, the data company said some positive events did occur during Q2. This includes the Crypto Fear & Greed Index \u2014 a metric that aims to illustrate overall crypto market sentiment \u2014 showing a score of 52, which is considered neutral. This result is much better than its score of 32 at the beginning of the year, indicating fear in the market.<\/p>\n Related: <\/em><\/strong>Altcoins ‘bled’ as Bitcoin gained dominance in Q2: CoinGecko<\/em><\/strong><\/a><\/p>\n Even though the market was challenging, CoinMarketCap noted that specific sectors showed resilience and growth in their year-to-date (YTD) market capitalizations. These include virtual and augmented reality showing 704% growth, with artificial intelligence and big data showing 323% growth. <\/p>\n Meanwhile, decentralized finance<\/a> Projects and infrastructure have also started to make a comeback. According to the data, lending and borrowing increased by 149%, derivatives increased by 75%, storage increased by 86% and interoperability increased by 58%. <\/p>\n