As the cryptocurrency community grows, many companies have emerged to lead the way in 2020
The cryptocurrency and blockchain industry has grown by leaps and bounds in 2020. The two most important assets, Bitcoin (BTC) and Ethereum (ETH), have gained returns of 303% and 469% respectively, which can be considered exceptional compared to the return of 25% for gold. While the precious metal is often considered a safe asset, digital assets have outperformed gold during uncertain market scenarios that have persisted due to the pandemic.
Joshua Frank, co-founder and CEO of The Tay - a company that provides insights into cryptocurrencies based on social media analytics - told Cointelegraph: 'Across the top 100 assets by market cap, the average cryptocurrency has seen an 87% increase. In average tweet volume - with Bitcoin rising 95%. '
Frank added that although this current rally is driven by institutional interest, individual interest appears to be rising as well. All of this will ultimately lead to an increase in interest in alternative currencies: 'It is important to monitor mid-cap assets that continue to see increased social activity as this is often a good leading indicator of price action.'
With interest in cryptocurrencies growing against the backdrop of rapidly rising prices, there are a lot of companies, projects and cryptocurrencies gaining momentum in 2020.
Joshua Frank, co-founder and CEO of The Tay - a company that provides insights into cryptocurrencies based on social media analytics - told Cointelegraph: 'Across the top 100 assets by market cap, the average cryptocurrency has seen an 87% increase. In average tweet volume - with Bitcoin rising 95%. '
Frank added that although this current rally is driven by institutional interest, individual interest appears to be rising as well. All of this will ultimately lead to an increase in interest in alternative currencies: 'It is important to monitor mid-cap assets that continue to see increased social activity as this is often a good leading indicator of price action.'
With interest in cryptocurrencies growing against the backdrop of rapidly rising prices, there are a lot of companies, projects and cryptocurrencies gaining momentum in 2020.
Bitcoin: the most important cryptocurrency asset
Not surprisingly, Bitcoin was the origin of the cryptocurrency most mentioned on Twitter in 2020, with an increase of
95% year-on-year. The price of each Bitcoin rose from around $ 7,000 to an all-time high of near $ 35,000 at the start of the year.
BitcoinV received a lot of attention from the mainstream media in 2020. Grayscale, MicroStrategy, Square and Diamond Mutual have invested heavily in Bitcoin, and even giants such as PayPal and GBMorgan Chase have begun to invest to harness the opportunities offered by Bitcoin. John Todaro, research director at TradeBlock - a company for institutional cryptocurrency trading tools - told Cointelegraph:
MicroStrategic CEO Michael Saylor recently took to Twitter to advise billionaire CEO Elon Musk to convert Tesla's balance sheet from US dollars into Bitcoin - all among Bitcoin's third wave of rally in 2020. The rally has continued into the new year and is expected to continue for some time. Given that this is the start of mainstream and institutional interest in Bitcoin, the year 2021 promises to be an even bigger year for the assets and blockchain technology as a whole.nnDespite JPMorgan's statement that Bitcoin is in the overbought zone, it will continue to withdraw capital from gold investors; Although, according to Goldman Sachs, the two origins could co-exist together. Todaro added: 'It is also likely that we will see more companies follow MicroStrategic footsteps and place small allocations from Treasury reserves in the first place. All this augurs well for Bitcoin to outpace gold market share.nnEthereum: The most used blockchain networknEthereum is the blockchain network that manages smart contracts and supports the largest alternative currency, Ethereum. The main use case of the network is to enable value exchange without interference from third parties. The network was designed by developer Vitalik Buterin in 2013 to expand the use-case of Bitcoin technology, and officially became active in 2015. Unlike Bitcoin, there is no hard cap for Ethereum, with an endless supply potential.nnEthereum has shown promising improvements throughout 2020. The sudden price spike in early 2021 occurs around the same time as Bitcoin continues to reach all-time highs, indicating the positive effect of the enthusiasm of the cryptocurrency community. Aside from being a digital currency, Ethereum also acts as a fuel for decentralized applications running on the Ethereum network.nnThe defining moments for Ethereum in 2020 were the emergence of decentralized financing and the launch of Beacon Chain of Ethereum 2.0. Decentralized finance markets experienced explosive growth in 2020, with total frozen value rising from $ 687 million at the start of the year to over $ 14 billion at the end of the year - and rising to over $ 18 billion as of January 4. This growth is generally attributed to a hype around liquidity mining and revenue generation, along with expectations about Ethereum 2.0 and the rise of Oracle's decentralized financing rules.
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