Date:
25th Aug 2020
Author:
CryptoGT
Most Interesting Cryptos in 2020
The 2020 global pandemic has brought a surge in the appetite for cryptocurrency trading. Although a liquidity crisis, in the initial months of the market crash, had led to price declines across major crypto assets, in essence, cryptocurrencies have low correlation to traditional and alternative asset classes, making it the essential portfolio diversifier.
The Covid-19 crisis has brought out the inefficiencies in the fiat money systems. Central banks can print excessive amounts of money and increase the circulating supply of fiat money continuously, leading to erosion of currency values. Cryptos, on the other hand, rely on the code as the law, which means that they have a predefined demand-supply relationship.
So, it is not a surprise that factors like increasing rate of infections, ongoing geo-political tensions, the upcoming US presidential elections, stock market volatility and increasing fiscal stimulus measures from governments worldwide has pushed the demand for digital asset classes higher. Discussions regarding a blockchain-backed euro or US dollar have also been among the top priorities of central banks worldwide.
In the 2020 crypto bull market, some assets have performed exceedingly well. Let’s take a look at the top performers.
The Covid-19 crisis has brought out the inefficiencies in the fiat money systems. Central banks can print excessive amounts of money and increase the circulating supply of fiat money continuously, leading to erosion of currency values. Cryptos, on the other hand, rely on the code as the law, which means that they have a predefined demand-supply relationship.
So, it is not a surprise that factors like increasing rate of infections, ongoing geo-political tensions, the upcoming US presidential elections, stock market volatility and increasing fiscal stimulus measures from governments worldwide has pushed the demand for digital asset classes higher. Discussions regarding a blockchain-backed euro or US dollar have also been among the top priorities of central banks worldwide.
In the 2020 crypto bull market, some assets have performed exceedingly well. Let’s take a look at the top performers.
If 2020 is hailed as the year when cryptos went mainstream, Bitcoin deserves all the praise. Against a weakening USD, BTC prices have surged 60% in 2020, rising over 180% from its lows of March 2020. It has outperformed major traditional assets, like stocks and gold, in 2020. Since mid-July, when BTC breached the price level of $10,000, the digital currency crossed the $12,000 mark twice. Major analysts have predicted soaring prices for this pair by 2021, up to the level of $100,000.
BTC’s strength has largely been a result of a weakening US dollar. With millions of Americans receiving government aid, the gradual re-opening of markets worldwide and the US government’s aim to launch a second stimulus package, the dollar has been losing its sheen continuously.
Secondly, major institutions like JP Morgan, Goldman Sachs, PayPal and Venmo, which have been sceptical about cryptocurrencies in the past, are now showing an interest in adding BTC to their platforms for monetary transactions. Bitcoin is expected to increasingly build credibility on its platform and might continue to thrive as an alternative asset class for Wall Street equity traders, amidst a volatile stock market.
BTC’s strength has largely been a result of a weakening US dollar. With millions of Americans receiving government aid, the gradual re-opening of markets worldwide and the US government’s aim to launch a second stimulus package, the dollar has been losing its sheen continuously.
Secondly, major institutions like JP Morgan, Goldman Sachs, PayPal and Venmo, which have been sceptical about cryptocurrencies in the past, are now showing an interest in adding BTC to their platforms for monetary transactions. Bitcoin is expected to increasingly build credibility on its platform and might continue to thrive as an alternative asset class for Wall Street equity traders, amidst a volatile stock market.
According to data published by market data aggregator Messari in July 2020, Ethereum-based assets have gained nearly 130% YTD. Over 70% of Ethereum-based tokens increased in value, against the backdrop of rising global economic uncertainty. In March 19, 2020, the ETH/USD was trading at $120, surging to $403 on August 25, 2020, after a 4.37% rally in a single day.
The bullish trend of the ETH/USD pair is due to several factors, of which the main one is the anticipation of ETH 2.0 and high interest in decentralised finance (DeFi) platforms. Traders are excited about the much-anticipated launch of ETH 2.0 in August 2020, which would eliminate miners from the network and enable staking for users through a proof-of-stake consensus protocol.
Another big catalyst for Ethereum’s growth has been the exploding DeFi market, with a four-fold increase in the total value locked in DeFi protocols to $3.75 billion by end-July. The growing DeFi market, combined with the hype about ETH 2.0, is expected to push the value of ETH/USD higher in 2020.
The bullish trend of the ETH/USD pair is due to several factors, of which the main one is the anticipation of ETH 2.0 and high interest in decentralised finance (DeFi) platforms. Traders are excited about the much-anticipated launch of ETH 2.0 in August 2020, which would eliminate miners from the network and enable staking for users through a proof-of-stake consensus protocol.
Another big catalyst for Ethereum’s growth has been the exploding DeFi market, with a four-fold increase in the total value locked in DeFi protocols to $3.75 billion by end-July. The growing DeFi market, combined with the hype about ETH 2.0, is expected to push the value of ETH/USD higher in 2020.
On March 19, 2020, XRP was trading at $0.143. By August 25, 2020, the world’s third largest cryptocurrency by market cap was trading at $0.288, almost doubling in value. XRP has seen a dramatic increase in price since mid-July 2020.
While a weaker dollar and a stronger BTC are some of the reasons behind the surge, XRP promises long-term value with its cheap, real-time, cross-border money transfer capabilities in the era of increased demand for contactless payments. According to data by Nairmetrics, since July 18, 2020, the number of wallets holding 1 million to 10 million XRP tokens has seen a rapid increase.
Unlike Bitcoin, Ripple has always gained traction from major financial institutions worldwide for international transactions. If the world’s financial system truly starts investing in cryptos in the near future, post-pandemic, it will happen through systems like Ripple, which have already earned the trust of numerous banks through secure and reliable technology.
The cryptocurrency market is surging amidst an uncertain economic climate. However, the market is volatile, and traders need to ensure adequate risk management and research before investing.
While a weaker dollar and a stronger BTC are some of the reasons behind the surge, XRP promises long-term value with its cheap, real-time, cross-border money transfer capabilities in the era of increased demand for contactless payments. According to data by Nairmetrics, since July 18, 2020, the number of wallets holding 1 million to 10 million XRP tokens has seen a rapid increase.
Unlike Bitcoin, Ripple has always gained traction from major financial institutions worldwide for international transactions. If the world’s financial system truly starts investing in cryptos in the near future, post-pandemic, it will happen through systems like Ripple, which have already earned the trust of numerous banks through secure and reliable technology.
The cryptocurrency market is surging amidst an uncertain economic climate. However, the market is volatile, and traders need to ensure adequate risk management and research before investing.
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Cryptocurrency trading can be extremely risky and can lead to large and immediate financial losses. Crypto assets are highly volatile and can result in significant losses of your capital over a short period of time. Cryptocurrencies markets are unregulated services which are not governed by any specific regulatory framework. The provision of such services is not being directly provided by the Company but through licensed third parties.
CryptoGT does not provide its services to residents of various jurisdictions such as but not limited to the United States of America, North Korea and Cuba.
CryptoGT currently accepts only cryptocurrencies as method of deposit.
Cryptocurrency trading can be extremely risky and can lead to large and immediate financial losses. Crypto assets are highly volatile and can result in significant losses of your capital over a short period of time. Cryptocurrencies markets are unregulated services which are not governed by any specific regulatory framework. The provision of such services is not being directly provided by the Company but through licensed third parties.
CryptoGT does not provide its services to residents of various jurisdictions such as but not limited to the United States of America, North Korea and Cuba.
CryptoGT currently accepts only cryptocurrencies as method of deposit.