Q1 2023 Data Reveals Impressive 83% Rebound in Crypto Markets

Jun 03, 2023

During Q1 2023, on-chain data from Messari reveals a noteworthy 83% rebound in market capitalization for the leading layer-1 blockchain ecosystems. Ethereum and BNBChain emerged as the most deflationary networks in this period.

The cryptocurrency market experienced a significant recovery in Q1 2023, with an average quarter-on-quarter (QoQ) increase of 83% in the market capitalization of the featured layer-1 blockchains. However, despite this rebound, the market cap of these networks remains down by 58% year-on-year (YoY), as noted by researchers.

Out of the featured layer-1 blockchains, Ethereum stood out as the clear leader, boasting a market cap that surpassed the combined total of all other networks. Ethereum's high usage and gas fees contributed to generating the highest revenue in the quarter, reaching an impressive $457 million, nearly 2.8 times the combined revenue of the other featured layer-1 blockchains.

Hedera also experienced significant revenue growth, with a remarkable 489% increase in QoQ, primarily driven by its consensus service.

The report further explores the financial ratios of the analyzed layer-1 blockchains, providing insights into their respective market positions. Among these ratios, Tron held the highest price-to-sales (P/S) ratio at 16x, followed closely by Ethereum at 188x.

An intriguing outlier in the analysis was WAX, a network positioned outside the top 20 in terms of market capitalization. Despite this, WAX's P/S ratio stood out due to the revenue generated from NFT marketplace fees.