As we enter the new year, many in the crypto community are wondering if 2020 will finally bring some relief from the prolonged bear market of the past two years. While we can never predict the future with certainty, data from TokenInsight suggests that the crypto winter may indeed be thawing.
TokenInsight is a leading independent rating agency, research firm, and advisory company in the crypto space with a focus on blockchain industry and markets, providing ratings and professional research and insights for crypto assets and blockchain industry. In a recent report, they analyzed trends in the crypto markets over the past year and found several positive indicators.
First and foremost, TokenInsight noted that trading volume in the crypto markets has been steadily increasing over the past year. This suggests that there is still plenty of interest in cryptocurrency despite the prolonged bear market. In fact, the report found that daily trading volume on major exchanges grew from $9 billion to $41 billion in the first half of 2019.
Another positive sign is the increasing number of institutional investors entering the market. In the past, many large financial institutions were hesitant to invest in cryptocurrency due to the lack of regulation and security concerns. However, recent developments such as the launch of Bakkt and the upcoming launch of Facebook’s Libra have piqued the interest of institutional investors. TokenInsight notes that this influx of institutional capital could provide a much-needed boost to the crypto markets.
The report also highlights the growing number of partnerships and collaborations between traditional financial institutions and crypto companies. For example, JPMorgan’s recent announcement of its own cryptocurrency and partnership with Coinbase is a sign that traditional finance is beginning to recognize the value of blockchain technology. This trend is likely to continue as more institutions seek to leverage the benefits of this new technology.
In terms of specific cryptocurrencies, TokenInsight notes that several have shown promising growth over the past year. Bitcoin, the most well-known and widely used cryptocurrency, had a particularly strong year, with its price more than tripling from around $4,000 in January 2019 to over $13,000 in June. Other coins such as Binance Coin and Chainlink also performed well, with both showing significant price increases.
It’s important to note that despite these positive trends, the crypto market is still relatively volatile and unpredictable. There is always the possibility of unexpected developments or events that could shake the market. However, the data from TokenInsight indicates that there are several reasons for optimism in the crypto space as we move into 2020.
If the crypto winter is indeed thawing, we can expect to see continued growth and development in the industry. As more institutional investors and traditional financial institutions enter the market, we may see increased liquidity and stability. Additionally, the continued innovation and development of blockchain technology could lead to exciting new use cases and applications for cryptocurrencies.
Of course, there are still challenges to overcome. Regulatory uncertainty and security concerns continue to be major barriers to adoption, and the lack of standardization and interoperability between different blockchain platforms is holding back development in some areas. However, with each passing year, the crypto industry is moving closer to mainstream acceptance and adoption.
In conclusion, the data from TokenInsight provides reason for cautious optimism in the crypto space. While the industry is still young and uncertain, the growing interest from institutional investors and the increasing adoption of blockchain technology are positive signs that the crypto winter may be thawing. As always, it’s important for investors to do their own research and approach the market with caution, but the road ahead for crypto looks brighter than it has in some time.
Research firm TokenInsight’s Q1 Crypto Exchange report shows that centralized platforms had a buoyant start to 2023. The total crypto market cap grew from $831.8 billion to $1.24 trillion, indicating a nearly 50% increase in the quarter. The report suggests that the crypto winter may be thawing, with Bitcoin’s price rising from $16,000 to $30,000. The report also highlights that the most significant increases in daily volume occurred around March 14-15, as the price of Bitcoin recovered from banking crisis fallout, likely driven by realizations of fiat fragility and the demand for harder assets. Binance maintained its dominance with a 55% market share, but TokenInsight states that Binance had a 60% market share in Q4 2022, which raises concerns about recent regulatory enforcement actions and rumors of insolvency having an impact.
Regarding other exchange metrics, Spot volume for top 10 crypto exchanges increased by 16% over the prior quarter to $2.4 trillion. However, this is still down compared to Q3 and Q2 2022. Derivatives volume saw a 30% increase on the prior quarter to $7.8 trillion; however, this was still down compared to Q3 2022 at $8.4 trillion and Q2 2022 at $10 trillion.
Exchange tokens saw a return in confidence after the spate of centralized finance bankruptcies in 2022. TokenInsight found that all but UNUS SED LEO and Huobi Token saw price appreciation, with the Bitget Token experiencing 120% growth during the period, outperforming Bitcoin. GateToken placed second, approximately matching Bitcoin’s growth at a 72% increase in value during the quarter, while other exchange tokens underperformed versus the market leader.
While the report highlights the positive growth of the crypto industry, its writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. The report cautions that buying and trading cryptocurrencies should be considered a high-risk activity and encourages readers to do their own due diligence before taking any action related to content within the report. Finally, it states that CryptoSlate takes no responsibility should readers lose money trading cryptocurrencies.
