Abstract : In 2019, the ranking of top 3 cryptocurrencies remained quite stable when Bitcoin had the dominant seat, Ethereum and Ripple followed, and the only change was that Ripple once exceeded Ethereum in the mid-January.
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 cryptocurrencies 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 cryptocurrencies 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 cryptocurrencies 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.
3. Top 3 cryptocurrencies are stable in rating while the others are more volatile
In 2019, the ranking of the top 3 cryptocurrencies remained quite stable when Bitcoin had the dominant seat, Ethereum and Ripple followed, and the only change was that Ripple once exceeded Ethereum in the mid-January.
We believe the top 3 valuable cryptocurrencies are representatives of the highly credible cryptocurrencies. Bitcoin is the base currency, Ethereum is for the public chain development and Ripple stands for application currency combined with application scenarios.
USDT is the stable coin that enjoyed the most obvious growth among the top 30 cryptocurrencies. Except for the top 3, the other top 30 cryptocurrencies are volatile which can be seen in the following ranking chart:
4. Top 30 cryptocurrencies had less proportion in public chain
ChainDD Thinktank has selected and classified top 30 valuable cryptocurrencies according to their application fields and came to the following conclusions: first, top 30 cryptocurrencies still have advantages in public chain; second, proportions of forks, base cryptocurrencies and financial fields among the top 30 are stable; third, less anonymous cryptocurrencies are seen in the top 30 ranking; and lastly, the proportion of stablecoins among the top 30 cryptocurrencies started to improve in the second half.
The fork was volatile around 10% to 13.33% in 2019. After August, only the following currencies were still ranked in top 30: CHABC, BCHSV and ETC, while BTG fell out of the ranking.
Public chain fluctuated among 26.66% to 33.33%. Its rise could date back to early 2017 when its proportion was only 10.34%, which was relatively small compared to that in 2018 (40%). However, a downward trend of public chain began in 2019.
Platform coins were on the rise. BNB, the cryptocurrency of Binance made into the top 10 in March. HT with Huobi was rated top 20 in September. Bitfinex’s LEO appeared as a black horse into the ranking with a slightly higher market value than HT.
Stablecoins were fluctuating in 2019. There was no stable coin among the top 30 cryptocurrencies in early 2018. However, around 10% of top 30 cryptocurrencies were stablecoins in December 2018. The number shrunk a little in 2019 but stablecoins such as USDT, the fourth most valuable cryptocurrencies, are rising in terms of market value.
5. Slowdown in public chain development, stable coins rose with upgrading regulations
In 2019, cryptocurrencies including Bitcoin failed to gain fully bullish momentum. The industry had not shown any significantly positive signs that followed the positive recovery brought by exchange-launched IEO in early 2019. However, potentials for market growth could be found at the end of the year. The top 30 cryptocurrencies regarding market value will continue to dominate the industry.
According to ChainDD Thinktank, although De.Fi has been on the rise, the top30 mainstream cryptocurrencies market value had the highest growth in the public chain sector, from 10.34% to 40% of the total market share during January 2017 and July 2018. The development of the public chain field slowed down which inferred that the increase in public chain number in the early stage has not push forward any technically essential advancement. Issues such as processing speed and frequent smart contract vulnerabilities have not been effectively solved in 2018, or even in 2019.
On June 18, 2019, the Facebook unveiled its cryptocurrency project Libra's with a white paper which made stable coins a new popular trend. Later, J.P Morgan announced potentials to launch its own stablecoins; the Russian central bank began testing a variety of stablecoins linked to real assets in supervision sandbox. Not only are large institutions entering the game, research on digital fiat currencies in various countries has also continued to be enhanced.
The rise of the cryptocurrencieshas been followed by supervision. For instance, the FATF will discuss issues related to stablecoins and virtual assets with the United Nations and the IMF. The China Banking Regulatory Commission has also repeatedly warned the public to be aware of illegal fundraising under the cover of virtual currencies.
Cryptocurrencies will definitely have a further progress in 2020 and the industry will be more orderly when upgraded regulations follow.