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CoinGecko: Top 30 Cryptocurrencies Gain 308% Average In 2020

2020 has turned out much better for long-term investors than the previous year. The market capitalization of 30 key assets of the cryptocurrency market has grown by 308%, according to a report from CoinGecko.

The growth of the 30 most capitalized cryptocurrencies over the past year was five times higher than in 2019 (308% versus 62%). Portfolios with DeFi protocol tokens gained 718% on average.

The total capitalization of cryptoassets from the top 30 in 2020 increased by $ 552 billion. In the top five coins, bitcoin showed the best results, having risen in price by about four times (in 2019 – by 95%). Ethereum looked even better, the price of which rose by 472% after near-zero dynamics over the previous 365 days.

Data: CoinGecko.

As a result, the bitcoin dominance index rose by 0.9% to 73.7%. Ethereum’s share of total market capitalization increased 3.6% to 11.5%.

The largest stablecoin Tether (USDT) also increased its market share – from 2.4% to 2.9%, while the share of other coins from the top 8 decreased. The market was significantly influenced by the debut of Polkadot (DOT), which accounted for about 1.2% of the total capitalization.

Data: CoinGecko.

Last year was marked by the rapid growth of the stablecoin segment. USDT supply increased by 388%, USDC – by 652%, DAI – by 2698% and BUSD – by 397%. The total capitalization of the listed tokens, as well as PAX in 2020, increased by 439% – from $ 4.7 billion to $ 27 billion.

Data: CoinGecko.

The volume of the DeFi token segment in September reached 4.6% of the total cryptocurrency market capitalization. By the end of the year, the ratio had dropped to 2.5% amid growth in other coins.

The Chronicles of DeFi in 2020: Explosive Growth, Challenges and Barriers for Institutions

At the end of the year, the capitalization of decentralized finance tokens exceeded the summer peak by 4%, amounting to $ 20.4 billion. Analysts did not rule out the resumption of DeFi mania in the event of a decrease in the bitcoin dominance index.

Data: CoinGecko.

The dynamics of DeFi tokens in 2020 has been mixed. YFI (+ 2788%) and UMA (+ 2423%) stood out with noticeable growth. SUSHI, MKR, AAVE, UNI and COMP tokens brought holders less than the market average.

Data: CoinGecko.

Analysts compared the current Bitcoin rally to the 2016-2017 bull market, when the price of the first cryptocurrency rose by 4527%. Growth of 303% in 2020 exceeds the intermediate results in the previous bitcoin cycle (+ 130%).

Data: CoinGecko.

Experts saw the possibility of repeating the dynamics of four years ago thanks to three drivers:

  • increased availability – an example is the addition of PayPal to the ability to buy and sell cryptocurrencies;
  • active work of “printing presses” (leading central banks of the world, saturating the economy with monetary supply to mitigate the consequences of the COVID-19 pandemic);
  • Bitcoin Adoption Among Institutions – Public companies like MicroStrategy and Square have begun adding Bitcoin as a reserve asset in liquidity management.

In 2020, bitcoin looked much better than indicators of traditional assets. In comparison with the leader Nasdaq Composite, the growth was seven times higher – 303% versus 43%.

Analysts mentioned the collapse on March 12-13, when Bitcoin fell immediately by 35%. The oil prices dropped more strongly during the day (-45%).

Data: CoinGecko.

During the growth of bitcoin by the end of 2020 to levels above $ 29,000, its capitalization became almost equivalent to the value of Facebook, accounting for 5.6% of the assessment of all mined gold.

Data: CoinGecko.

ForkLog previously reported that institutional investors have acquired a total of over 1M BTC (~ $ 37B).

Analysts at JPMorgan believe that for the rally to continue, Bitcoin must gain a foothold above $ 40,000.

2020 in numbers: Bitcoin records, DeFi boom and institutional adoption

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Fidenge Pecold

My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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