Much of this year’s market cap expansion can be attributed to Bitcoin as traders rushed to hedge against inflation resulting in Bitcoin repeatedly breaking new all-time highs in November and December 2020.
Below are some stats highlights from the report:
Crypto market cap grew from $193 billion in January 2020 to $668 billion in December 2020
Overall, Bitcoin added over $300 billion to its market cap in 2020
Daily active Bitcoin addresses doubled in 2020
The number of Bitcoin addresses holding at least 0.01BTC grew by over 700K
Bitcoin’s velocity dropped by close to 10% on the year, and the amount of supply active within the last 2 years decreased by about 11%
The total crypto marketcap increased by more than 3.3x in 2020 alone
Total trading volume on Binance, the world’s leading crypto exchange by trading volume, reached its highest in record at $3 trillion
The number of institutional clients on Binance grew by 46% in 2020 alone
The all-time high 24-hour trading volume in 2020 on Binance was over $52.6 billion USDT
The most popular crypto trading pairs by volume on Binance spot markets in 2020 were:
BTC / USDT
ETH / USDT
ETH / BTC
The total stablecoin supply increased by close to 20 billion in 2020
Wrapped Bitcoin (wBTC) market cap rose from $4.2 million in January 2020 to $2.7 billion in December 2020 fueled by the DeFi frenzy
DeFi interest surged from $700 million to $16 billion over the course of 2020 with wBTC accounting for a large share of locked assets
On-chain validated wBTC stands at $2.7 billion at the time of this writing
2020 became the year when every single person who has ever bought Bitcoin was in profit
Non-fungible tokens (NFTs) exploded in popularity in 2020 for the first time
Ethereum 2.0 Beacon Chain launched in December 2020 – a first step towards the move from Pow to PoS Ethereum
Over $1 billion has already been locked in Ethereum 2.0 deposit contract as of December 2020
Asia continues to be the dominant crypto market consistently posting the highest trading volumes followed by Europe
The stats also reveal Africa’s position on the leading exchange by volume globally when it comes to P2P popularity.
The regions that topped the list based on P2P trading activity:
Crypto in 2020 would be incomplete without talking about Decentralized Finance (DeFi), and more so, Uniswap.
Uniswap, the Ethereum-based decentralized exchange, was the engine behind DeFi mania. Uniswap represents a new breed of automated marker maker (AMM) – decentralized exchanges that do not have order books or traditional buy and sell orders.
Uniswap trading occurs entirely on-chain, as opposed to centralized exchanges where it occurs off-chain. It also allows anyone to create a new token pair and immediately begin trading, which helped new DeFi tokens launch and scale quickly.
Total trading volume on Uniswap increased from about $1M a day in early June to close to $1B a day in the beginning of September. The big increase in on-chain trading brought on by Uniswap helped push Ethereum transaction fees to new all-time highs in August.
Overall, DeFi continues to grow and mutate as experimentation continues. With new money flowing into BTC and ETH, new DeFi tokens and applications may be soon to follow.