Hey there, Geckos!
The time has come for us to look again on the exhilarating time we had in 2020 with our Cryptocurrency Yearly Report!
It was actually an adventurous journey for the crypto house as we started to see extra institutional traders trickling in. Corporations corresponding to Sq., and Microstrategy have begun to undertake Bitcoin as a part of their hedging methods. Actually, institutional traders now maintain a cumulative approximate of 1,172,065 Bitcoins (That is 6% of the present circulating provide!) of their treasuries based on bitcointreasuries.internet on the time of writing.
We skilled the rise of Decentralized Finance (DeFi) in the summertime which launched billion-dollar protocols together with Uniswap, Curve, Synthetix, and extra. Sadly, DeFi’s rising reputation additionally attracted the curiosity of malicious events which resulted in exploitations costing $121 million in losses.
It was additionally a yr of bountiful airdrops from Uniswap, 1inch, The Graph, and extra.
Are you prepared for a blast from the previous?
Listed below are our 5 key crypto-highlights for 2020:
1. The highest-30 crypto market cap noticed a 308% development
2. The 2020 – 2021 Bitcoin bull run seems to imitate 2016-2017 trajectory
3. DeFi ended the yr with an all-time excessive market cap of $20.4 billion
4. Trading quantity of CEXs and DEXs grew by $403 billion
5. Bitcoin Perpetual Swap hit $3.5 trillion in quantity as Bitcoin price recorded new ATH
1. Prime 30 Cryptocurrency Market Capitalization ended the yr with an all-time excessive of $732 billion
One of many primary causes for this 308% development is the institutional entry into the market. Famend traders together with Paul Tudor Jones and Stanley Druckenmiller have been endorsing cryptocurrencies whereas massive public listed firms corresponding to Microstrategy and Sq. have been buying Bitcoin as a part of their company treasury. This has led to a lift in crypto market confidence.
2. The 2020-2021 Bitcoin bull run seems to imitate the 2016-2017 trajectory
The 2016-2017 cycle noticed the Bitcoin price develop and peak at 4,527% returns. In the meantime, in 2020-2021, Bitcoin has risen greater than double within the first yr towards the final cycle (303% vs 130%).
Nevertheless, the distinction this time is that the cryptocurrency market could possibly maintain excessive valuation largely partially to an inflow of institutional adoption in addition to a macro atmosphere that encourages free financial insurance policies. Moreover, there may be larger accessibility to the market as firms corresponding to PayPal and Revolut now enable retail traders to simply purchase cryptocurrencies.
Will the present cycle proceed and attain the identical top as earlier than?
3. DeFi ended 2020 with an all-time excessive market cap of $20.4 billion
Shifting on, the DeFi sector noticed explosive development as DeFi dominance rose quickly from 0.9% to 4.6% in the summertime. Throughout the identical interval, the market cap multiplied 12 occasions to succeed in $19.6 billion.
Moreover, the DeFi market cap ended the yr with a brand new all-time excessive at $20.4 billion. Based mostly on the mindshare that the sector has managed to seize, DeFi has the potential to proceed rising within the coming years.
4. Exchanges’ buying and selling quantity grew by $403 billion in 2020
The highest-9 centralized and decentralized exchanges grew by $403 billion (+307%). Whereas CEXs do account for 93% of the yr’s enhance, DEXs nonetheless recorded a buying and selling quantity of $29 billion in December.
Though DEXs nonetheless have an extended technique to go earlier than flipping the quantity of CEXs, they nonetheless clocked a powerful 17,989% development in 2020 alone and is 5.53% of that CEX’s buying and selling quantity.
5. Bitcoin Perpetual Swap hit $3.5 trillion in quantity as Bitcoin reached a brand new all-time excessive
The highest-9 Bitcoin Perpetual Swap buying and selling quantity noticed hit $3.5 trillion (+531%) because the price of Bitcoin reached a brand new all-time excessive. Huobi has emerged because the stunning contender to Binance’s dominance within the enviornment. Regardless of its latest launch in 2020, Huobi ended the yr by commanding 22% of the market share.
Closing Ideas
Wow!
2020 was undoubtedly an thrilling yr for the crypto house and we’re so pleased you possibly can be a part of us via all of the ups and downs. Now, buckle your seatbelts as a result of we’re all in for a experience this new yr!
That is only a fraction of what we cowl in our report – Seize your personal copy of the complete report:
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