Crypto Market Recap 2020 | Evai.io(4 min read)

2020 has been a blockbuster year for cryptocurrency. Amid a global pandemic and ensuing economic crisis, the cryptocurrency sector has weathered the storm with astonishing ease—even to the point of outperforming every established financial market this year. 

Here’s a recap of some of the most significant crypto statisics of 2020.

Total market cap growth

cryptocurrency market cap growth chart
YTD crypto market cap growth. Image: evai.io

The total cryptocurrency market capitalisation advanced by 297% in 2020, reaching a 2020 high of $760 billion. This year’s market cap surge also presents a stark increase upon 2019, which only witnessed a 50% year-to-date (YTD) increase.

The majority of the rise is due to this year’s institutionally-led bitcoin rally.  In 2020, major players from traditional finance, including Business intelligence firm MicroStrategy, and payments processor Square, have entered the cryptocurrency markets amid the coronavirus ushered economic downdraw.

To date, 28 companies globally hold an aggregate 1.1 million BTC between them—representing 5.48% of bitcoin’s current total supply, worth $31.4 billion at the time of writing.

To top it off, in October, PayPal announced it’s own foray in the crypto sector, unveiling plans to allow 346 million of its customers to buy, sell, and hold bitcoin, ethereum, bitcoin cash and litecoin from 2021.

Top 5 gainers of 2020

price action chart of top 5 cryptocurrencies
Top 5 performing cryptocurrencies of 2020. Image: evai.io

While bitcoin has stolen the spotlight and dominated the headlines in 2020, the pioneering cryptocurrency is by no means the market’s greatest YTD performer. That honour goes to chainlink (LINK) with an extensive +550% YTD increase, followed closely by Ethereum (ETH): +476%, Cardano (ADA): +454%, Bitcoin (BTC): +303%, and Litecoin (LTC): +206%.

DeFi growth

A chart denoting value held in the defi sector
The aggregate amount of USD value locked in the decentralised finance (DeFi) sector. Image: evai.io

The ethereum-dominated decentralised finance (DeFi) sector has observed the greatest increase of the entire crypto ecosystem, growing from approximately $657 million in total value locked (TVL) in January and ending the year with a massive $14.31 billion TVL—a YTD value extension of 1,986%.

2020 has truly been the year of DeFi with various lending and borrowing protocols witnessing huge volumes catalysed primarily by “liquidity mining”—an incentivisation program used by DeFi protocols to reward liquidity providers.

Bitcoin addresses with a balance of over $x

graphical depiction of the number of bitcoin addresses
Bitcoin addresses with a balance over $x. Image: evai.io

Addresses holding more than $1000, $10000, and $100,000 in BTC have seen a continual and uniform increase over the course of 2020. This is a likely effect of heightened institutional awareness coupled with a shift in narrative towards bitcoin as a hedge against macro risk.

Ethereum addresses with a balance of over $x

graphical depiction of the number of ethereum addresses
Ethereum addresses with a balance over $x. Image: evai.io

As for Ethereum, with users accumulating the minimum of 32 ETH required to participate in Ethereum’s newly adopted staking process, it’s no wonder 2020 has witnessed a sizable uptick in addresses holding more than $1,000, $10,000 and $100,000 in ETH. In November it was found that over 125,540 addresses were holding 32 ETH in anticipation for the phase 0 rollout of Ethereum 2.0 which occurred on December 1st.

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Evai aims to establish the world’s first independent ratings service for evaluating the true worth of cryptocurrencies. The platform combines economic research, machine learning, and AI to pioneer a new approach to crypto ratings.

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