Abstract : Global cryptocurrency market was turbulent in 2019 while the market value of mainstream cryptocurrencies continued to soar. The market share of the top 30 cryptocurrencies remains huge but an increasing gap has occurred between Bitcoin and other currencies.
The global cryptocurrency market was turbulent in 2019 while the market value of mainstream cryptocurrencies continued to soar. According to CoinMarketCap, the total market value of global cryptocurrency was USD 199.5 billion and the total value of the top 30 cryptocurrency was USD 185.3 billion which accounted for 92.88% in the whole market. In January 2019, the total market value of global cryptocurrency was USD 137.2 billion and the total value of the top 30 cryptocurrency was USD 121.4 billion which accounted for 92.43% in the whole market.
It can be inferred that the market share of the top 30 digital currencies remains huge but an increasing gap has occurred between Bitcoin and other currencies.
ChainDD Thinktank has made the following conclusions based on market statistics over the past year:
· The cryptocurrency market gradually rose to become more stable after being stuck in a bearish trend in 2019. The total market value of cryptocurrency in June rocketed passed USD 30 million and so did the market value of the top 30 digital currencies.
· Prices of the top 30 digital currencies remained relatively calm although many changes were seen in digital currencies that had lower ranks. Among all these currencies, Bitcoin enjoyed a dominant status which had been consolidated; stable coins and platform coins had experienced swift climb; and the market value of the top 30 digital currencies were still prevalent.
· The proportion of the public chain and fork decreased in the market; Base currency had an increasing market share in a relatively stable way; Stable coin decreased in market share but the market value of USDT, a type of stable coins, had been ranked the fourth highest in this market.
· The development of the public chain seems slightly sluggish. Many countries will continue to implement regulatory trials via the introduction of stable coins.
1. The total market value of global digital currency soared to USD 30 billion while Bitcoin price accounted for a higher market share
In 2019, the entire cryptocurrency market declined from strong growth and became stable in the last quarter. In June, the total digital currency market value exceeded USD 300 billion, and so did that of the top 30 digital currencies. Although the TOP30 digital currency's total market capitalization ratio remains high, Bitcoin began to show more advantages than other digital currencies.
We will further explain the market value changes of the 2019 cryptocurrency market in four different periods of time.
a. The first two months remained to be painfully bearish from the last quarter but slight increase was spotted in the market. As shown in CoinMarketCap statistics, the market moved slightly higher in February. The monthly lowest point was seen on 7 February 2019, at USD 111.5 billion while the highest market value was noticed on 24 February 2019 at USD 143.3 billion.
b. IEO waves lead by Binance in march contributed to a rallying global cryptocurrency market. As Bitcoin continued to soar in prices, platform coins followed this upward trend and so did most digital currencies.
Bitcoin prices had been moving around USD 7,600 in early June, and started to skyrocket later. Its price surpassed USD 10,000 in the morning of 22 June, and rose all the way to nearly USD 14,000, reaching the highest price of USD 13,770.51. With the sharp fluctuations in the price of Bitcoin, the global market value of cryptocurrency exceeded USD 300 billion on June 22, and reached the highest point since May 2018 to USD 360.29 billion on June 27.
c. On July 15, the total market value of global cryptocurrency fell lower than USD 300 billion. Two weeks later, it rose back to USD 300 billion before decreasing again in the next three months.
On October 25, the Chinese government announced that blockchain should be an important breakthrough in independent innovation. The new instantly push the digital currency market into a bullish trend. At 10 am the next day, the total market value of the global digital currency market rose up to USD 262.3338 billion—a 29.05% increase within two days and a year-on-year increase of 18.85%.
d. November and December: higher market value than the early months of the year despite a few price drops. After the upward trend in October, the global digital currency market began to decline continuously and the lowest point of USD 180.932 occurred in the afternoon of November 25.
On December 17, the global digital currency market plunged to USD 176.946 billion but rose back to USD 193.851 billion on the next day.
2. Top 30 cryptocurrencies are mostly stable but gap between Bitcoin and other major cryptocurrencies grows
The dominance of the world's biggest stablecoin has become more evident in 2019 with market share between 51%-68%, leaving a bigger gap with other cryptocurrencies.
a. Return of consensus adds to Bitcoin’s dominance
According to ChainDD Thinktank, Bitcoin dominance and the market value of digital currencies were in inverse proportion during the second half of 2019. Bitcoin market value accounted for 51% to 68% of the total market value of cryptocurrency. In September, the proportion of Bitcoin market value of the overall market value peaked at 69.90% and moved around 65% despite a slight decrease.
ChainDD Thinktank analyzed that even though the market value of the entire market was declining, bitcoin's dominant position as the standard currency of digital currency market remained stable, and was still strengthening even in the second half of the year.
Bitcoin, as the most widely recognized digital currency, has become the first choice of safe-haven assets during 2019. It is inferred in CoinMarketCap statistics that since April 2019, Bitcoin's market value started to rise and was in an inverse proportion to the market value of other mainstream digital currencies.
Bitcoin has increased rapidly from USD 5,000 in early May to USD 14,000. Its market value accounted for an increasingly higher proportion, from 60% at the beginning of the year to nearly 70% for a while. Although the price has slightly retreated later, it still remained high.
When the Bitcoin price accounts for a larger proportion of the entire market, the side effect has been more serious. It is because large financial institutions mainly invested in Bitcoin which pushed its price to rise.
b. Ripple only once outperforms Ethereum in market value
As shown in CoinmarketCap statistics, the second and third most valuable cryptocurrencies during January 2019 and January 2020 were Ethereum and Ripple.
During mid-January and mid-February, Ripple outperformed Ethereum in terms of market value. But in the following time, despite the price rise in the whole industry, Ripple had not surpassed Ethereum in price again. In 2018, the market value of Ripple surpassed Ethereum twice. XRP price rose from USD 0.352512 to USD 0.396411 (overall 12.45% increase) during the first half of 2019, which was the smallest growth among the top 10 most valuable cryptocurrencies.
c. Top 30 most valuable digital currencies are dominating the entire market
The Top 30 most valuable digital currencies are stably dominating the entire market from 2019 to 2020 with high market proportions.
By 5 January 2020, the total market value of the global cryptocurrency market reached 199.5 USD billion and the overall value of the top 30 digital currencies was USD 185.3 billion, accounting for 92.88% of the total market. In January 2019, the total market value of the global cryptocurrency market was 137.2 USD billion and the overall value of the top 30 digital currencies was USD 121.4 billion, accounting for 92.43% of the total market.