April 16, 2020
CoinGecko, the world’s leading independent cryptocurrency aggregator, has just released its 2020 Q1 Cryptocurrency Report. In their analysis of the exchange market, CoinGecko found that Binance now dominates almost every metric available. Binance’s aggressive growth strategy seemed to be paying off in Q1 2020.
Binance Futures gained the most in the derivatives market, taking a large chunk of market share and dethroning BitMEX as the top derivative exchange by Bitcoin Perpetual Swap trading volume. Its Bitcoin Perpetual Swap volume dominance increased from 22.9% to 38.0%.
In terms of spot trading, Binance continuously maintained 50-75% of volume amongst Bitwise 10 real volume exchanges. Lastly, in terms of web traffic, Binance has 29% of all web traffic to the websites of the top 20 crypto exchanges, roughly four times larger than their nearest spot exchange competitors: Bithumb, Coinbase, and Upbit.
- Overall cryptocurrency market capitalization shrank by 5% as COVID-19 panic hit
The first quarter of 2020 has been a rough ride. Overall cryptocurrency market capitalization shrank by 5% and wiped out all gains made at the start of the year as COVID-19 panic hit. Bitcoin and many cryptocurrencies fell by over 40% on Black Thursday, March 12, 2020.
Overall, the top 5 cryptocurrencies saw the following Q1 price changes: Bitcoin (-11%), Ethereum (+3%), XRP (-10%), BCH (+7%), BSV (+70%). Bitcoin SV was the largest gainer as rumors spread of Craig Wright having access to Satoshi’s Bitcoin private keys.
“This quarter is one that we most definitely want to erase from memory. Not only was the world ravaged by the COVID-19 pandemic, we saw massive losses in the traditional stock and crypto market. However, with every massive drop in price, there is always an opportunity to buy cryptocurrencies for cheap. As we enter Q2, we hope that the COVID-19 situation will subside and markets will improve,” said TM Lee, co-founder of CoinGecko.
- Bitcoin may not be a safe haven
One question loomed across the financial industry throughout the COVID-19 crisis: “Is Bitcoin a safe haven?”. CoinGecko research found that Bitcoin had a 30-days correlation of 0.9 to the S&P 500. As stocks declined, Bitcoin declined, but in a more severe manner. In a Twitter poll conducted by CoinGecko, 63% of respondents believe that Bitcoin is a safe haven. When compared to gold, Bitcoin showed a positive 5-year correlation of 0.6, suggesting that this was a major reason people believe in the long-term viability of Bitcoin as a safe haven similar to gold.
- 54% of crypto users do not trust the banking system and are ready to go bankless
In a survey of 700 crypto users conducted by CoinGecko, half of the participants who are familiar with DeFi said they would go completely bankless as they do not trust the banking system. For decentralized applications brand awareness, the majority of participants said that they were most aware of Metamask, followed by Kyber Network. Tether was the most popular stablecoin held by the participants followed by DAI.
Breaking down the Q1 Report at CoinGecko’s First Virtual Meetup
In conjunction with the release of the Q1 Report, CoinGecko will be hosting its first virtual meetup. The complimentary event will be held on:
Date: Friday, 17 April 2020
Time: 10:00AM to 12:00PM Singapore Time (GMT +8) [Check your local time]
The Virtual Meetup will feature a presentation by co-founder, Bobby Ong, who will be deep-diving into this report.
There will also be a special panel on “DeFi Today & the Plan for the Future” featuring Kain Warwick (Founder of Synthetix), Loi Luu (CEO of Kyber Network), Leighton Cusack (CEO of Pool Together), and Anthony Sassano (Product Marketing Manager at TokenSets).
Registration is free here.
This is the 11th Edition of CoinGecko’s Quarterly Cryptocurrency Report.
Download the full report here.
CoinGecko is the world’s leading independent cryptocurrency aggregator. Since 2014, it has been the trusted source of information for millions of cryptocurrency investors. Its mission is to empower the cryptocurrency community with a 360-degree overview of the market. CoinGecko provides comprehensive information derived from thousands of data points such as price, trading volume, market capitalization, developer strength, community statistics, and more. It currently tracks more than 7,000 tokens from more than 400 exchanges.
For more information, visit CoinGecko.com.
Marketing Manager at CoinGecko