Hey there, Geckos!
Our 2020 Yearly Cryptocurrency Report is here!
It was certainly an adventurous journey for the crypto space as we began to see more institutional investors trickling in. We also experienced the rise of Decentralized Finance (DeFi) in the summer which introduced billion-dollar protocols including Uniswap, Curve, Synthetix, and more.
Here are our 5 key crypto-highlights for 2020:
The top-30 crypto market cap saw a 308% growth
The 2020 - 2021 Bitcoin bull run appears to mimic 2016-2017 trajectory
DeFi ended the year with an all-time high market cap of $20.4 billion
Trading volume of CEXs and DEXs grew by $403 billion
Bitcoin Perpetual Swap hit $3.5 trillion in volume as Bitcoin price recorded new ATH
1. Top 30 Cryptocurrency Market Capitalization ended the year with an all-time high of $732 billion
One of the main reasons for this 308% growth is institutional entry into the market. Renowned investors including Paul Tudor Jones and Stanley Druckenmiller have been endorsing cryptocurrencies while large public listed companies such as Microstrategy and Square have been purchasing Bitcoin as part of their corporate treasury. This has led to a boost in crypto market confidence.
2. The 2020-2021 Bitcoin bull run appears to mimic the 2016-2017 trajectory
The 2016-2017 cycle saw the Bitcoin price grow and peak at 4,527% returns. Meanwhile, in 2020-2021, Bitcoin has risen more than double in the first year against the last cycle (303% vs 130%).
However, the difference this time is that the cryptocurrency market may be able to sustain high valuation largely in part to an influx of institutional adoption as well as a macro environment that encourages loose monetary policies.
Will the current cycle continue and reach the same height as before?
3. DeFi ended 2020 with an all-time high market cap of $20.4 billion
Moving on, the DeFi sector saw explosive growth as DeFi dominance rose rapidly from 0.9% to 4.6% in the summer.
Additionally, the DeFi market cap ended the year with a new all-time high at $20.4 billion. Based on the mindshare that the sector has managed to capture, DeFi has the potential to continue growing in the coming years.
4. Exchanges’ trading volume grew by $403 billion in 2020
The top-9 centralized and decentralized exchanges grew by $403 billion ( 307%). While CEXs do account for 93% of the year’s increase, DEXs still recorded a trading volume of $29 billion in December.
Although DEXs still have a long way to go before flipping the volume of CEXs, they still clocked an impressive 17,989% growth in 2020 alone and is 5.53% of that CEX’s trading volume.
5. Bitcoin Perpetual Swap hit $3.5 trillion in volume as Bitcoin reached a new all-time high
The top-9 Bitcoin Perpetual Swap trading volume saw hit $3.5 trillion ( 531%) as the price of Bitcoin reached a new all-time high. Huobi has emerged as the surprising contender to Binance’s dominance in the arena. Despite its recent launch in 2020, Huobi ended the year commanding 22% of market share.
2020 was definitely an exciting year for the crypto space and we’re so happy you could join us through all the ups and downs. Now, buckle your seatbelts because we are all in for a ride this new year!
Read our full report here: https://gcko.io/4yu5e1t
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.