The CoinGecko annual report covers the main technological and economic developments of 2019, as well as provides analysts and experts’ market view. One of the most surprising statistics is that the volume of Bitcoin operations increased by 600% last year.
CoinGecko, a cryptocurrency data platform that provides data on market capitalization, the volume of operations and code development, published its annual cryptocurrency report. The document shows details about the developments in technology, the market economy, and the psychology of 2019, all of which also reveal what connoisseurs and market leaders predict for the year 2020.
The report describes how the cryptocurrency market has consistently gained in terms of market capitalization and volume of operations, as well as provides several other signs of optimism.
The fact that total market capitalization increased by 44.1% led the cryptocurrency market to earn USD 60,000 million throughout 2019 and close the year at USD 180,000 million. According to the report, it was a much better year for the volume of operations, which grew almost 600%, with more than USD 50,000 million traded on average at the end of the year.
It is no surprise that Bitcoin was the best-performing asset in 2019, gaining 95% during the year despite showing volatility with a range of between USD 3,500 and USD 13,500. In contrast, gold, S&P 500 and silver earned 19%, 29%, and 15.6%, respectively.
Regarding the most important currencies, a prominent statistic in a fall by 45% of XRP during the year. Ether (ETH) experienced a small decrease in its value by 2%, while Bitcoin Cash (BCH) and Litecoin (LTC) gained 38% and 37% respectively, not to mention other cryptocurrency statistics.
Prominence of DeFi in the Report
CoinGecko also describes the current impact of decentralized financing (DeFi) on the market. It is worth mentioning that there have been previous developments in DeFi involving the exponential growth of investment and the dominance of Ethereum-based DApps.
DeFi is increasingly considered a cornerstone of the market as it plays an important role in the banking of the unbanked and in making the money market more efficient. The report highlights the growth of USD 160 million in the sector and the predominance of loan platforms such as Maker.
The term is broadly used to categorize several financial services that include decentralized exchanges and loan services that work with stablecoins and derivatives. The platform Maker, which is comprised of the governance crypto token MKR and the stablecoin DAI, is DeFi’s largest entity, with approximately USD 440 million locked.
Multiple Cryptocurrency Developments
Connoisseurs and experts of the industry have reserved optimism for the year 2020, and many claims that it is a year of multiple developments on several fronts. Concerning the common prediction about the growth of DeFi, CoinFLEX CEO Mark Lamb says that derivatives markets are likely to grow.
The executive believes that trading and investment opportunities will increase as the volume of derivatives increases in an order of magnitude. He says that the bases will remain extremely volatile and the community will experience 2 periods of extreme expansion, which will bring fresh capital to derivatives markets.
By Alexander Salazar