Top 30 Cryptocurrencies Increased 300% in 2020
CoinGecko, the popular monitoring platform announced in its annual report on the developments of crypto assets that the top 30 digital currencies gained on average 300% in 2020. In addition, the most widely used stablecoins added $30 billion in circulation after a 440% increase.
Best Price Performers
If we take digital coins the market capitalization of the top 30 currencies raised by $552 billion (308%) in 2020. In comparison with 2019 when the profit was higher by $68 billion (62%) 2020`s results please the crypto community more.
Even together with Ripple (XPR), which plummeted at the end of 2020 due to SEC charges, the top-5 digital currencies gained 242%.
Ethereum (ETH) performed the best with a yearly increase of 472%. While the main cryptocurrency Bitcoin surged “only” 303% in 2020.
Of course, Ether has surpassed BTC in terms of market dominance too. Bitcoin's dominance grew up by 0.9% to 73.7%, when Ethereum increased by 3.6% to 11.5%.
Stablecoins Performance
The demand for stablecoins tremendously increased in 2020, where the 5 of them - USDT, USDC, DAI, BUSD, and PAX - added $22 billion (439%) to the market capitalization from $5 billion to $27 billion.
The CoinGecko`s report says that it ha[[ened “due to strong demand from traders in adopting stablecoins for trading and cross-border trade settlement.”
Of course, Tether (USDT) saved a strong dominance in the market, accounting for 76% of all shares. Another stablecoin DAI has shown the most significant growth of 2,700%.
CoinGecko also analyzed 730-day cycles, comparing the 2016-2017 BTC rallies with the current one. January 2016 and January 2021 became a halfway mark where the most advanced digital asset had shown gains of 130% and 303%.
According to the report, Bitcoin peaked at the end of the 2017 rally at 4,527%, and if the main cryptocurrency continues this path, its price would surge the six-digit figure, as many predict.
CoinGecko also named 3 potential factors that make this year rally more sustainable:
Accessibility – buying and selling cryptocurrency is now much easier with numerous new platforms, especially popular companies, such as Revolut and PayPal with millions of users around the world, that added digital currencies as a means of payment.
Inflation – amidst the coronavirus crisis most central banks adopted a “loose” monetary policy. That unbelievable amount of fiat currencies printed in a pretty short period of time caused worries of possible future inflation, which really highlights Bitcoin’s fixed supply of 21 million.
Institutional adoption – the report mentioned the number of large corporations and institutions that are allocating funds in BTC. Some of them are well-known MicroStrategy, Square, Ruffer Investment, and also individuals such as Paul Tudor Jones III and Stan Druckenmiller.
