CoinMarketCap released 2023 first quarter report; Step back in crypto custody service from Nasdaq; Tesla released second-quarter earnings report!
Crypto Market Analysis H1 2023 report has come from the crypto price and data tracking platform CoinMarketCap. In the report, CoinMarketCap rated the second quarter as a lost quarter compared to the first quarter of the year. On the other hand, the platform drew attention to its strong growth in some areas.
According to the published report, positive developments occurred in the first quarter of 2023 for the crypto money market. These developments include strong interest in Layer-2 solutions such as Arbitrum and zero-knowledge proofs, notably the doubling of the Bitcoin (BTC) price.
In addition, there were some positive developments in the NFT sector in the first quarter. NFT marketplace Blur has started token issuances, causing the industry to recover significantly.
Cryptocurrency industry dulled in Q2
However, CoinMarketCap implied that it failed in the second quarter in the cryptocurrency market. CoinMarketCap argued that the second quarter did not create the excitement that the first quarter did, despite the trends indicating that the second quarter will be the meme token season and the popularity of the new BRC-20 token standard.
Although some challenges have arisen in the crypto market, CoinMarketCap has found that certain sectors in the industry have improved greatly in market capitalization since the beginning of the year. These sectors include virtual and augmented reality with 704% growth and artificial intelligence with 323% growth.
Finally, Decentralized Finance (DeFi) projects and infrastructure have also begun to revive. Lending and borrowing grew by 149 percent, derivatives by 75 percent, custody by 86 percent and interoperability by 58 percent, according to the data.
Step back in crypto custody service from Nasdaq
The crypto industry continues to be adopted in almost all countries where it attracts attention, unlike the USA. However, the digital asset industry is also subject to certain regulations in the countries where they are adopted. But in the USA, the situation is somewhat different.
With the US Securities and Exchange Commission (SEC) tightening its regulatory enforcement action in 2023, regulatory frameworks in the US have become quite difficult to establish. In this context, companies that provide crypto services directly or indirectly in the USA are also looking for ways to escape from the USA or have to suspend their current activities.
The New York-based Nasdaq exchange has stopped its crypto custody activity. As it is known, the exchange was planning to launch its crypto custody activities towards the end of the second quarter of 2023. However, the Nasdaq suspended its initiatives due to regulatory risks in the US.
At the meeting where it announced its Q2 reports, Nasdaq announced that it has suspended the launch of its digital asset custody activity due to some legal risks in the country.
The company reported that it is committed to developing a digital asset business, but has put that thought on hold for the time being. The Nasdaq added that it will closely monitor the market for potential regulatory developments over the next six months.
On the other hand, Nasdaq first announced its crypto custody project in September 2022. The company planned to set up an official department that would allow customers to securely store Bitcoin (BTC) and Ethereum (ETH).
Tesla released second quarter earnings report
Elon Musk’s electric vehicle giant Tesla’s second quarter report has been announced.
The company did not sell any Bitcoin in the second quarter and did not buy any new Bitcoins.
According to Bloomberg’s report, the company’s profitability ratio shrank in the second quarter.
Tesla’s earnings beat expectations
The company, of which Elon Musk is the CEO, stated that its operating margin was 9.6% in the second quarter, and it fell for the third quarter in a row. Despite this decline, Tesla’s earnings exceeded expectations.
Excluding certain items, the company’s second-quarter profit came in at 91 cents, compared to Wall Street’s estimate of 81 cents per share. According to Tesla’s letter to shareholders, the company’s revenue increased by 47% to $24.9 billion in revenue. Analysts’ revenue estimate was $24.5 billion.
The company made price cuts earlier in the year and set a record sales of 466,140 vehicles during this period.
Tesla’s statement included the following statements:
“As we continue to work on innovations to reduce production and operating costs, we expect our hardware-related profits to be accompanied by accelerated AI, software and fleet-based profits.”