Cryptocurrency data firm CoinGecko recently released its 2019 Annual Cryptocurrency Market Report. This comprehensive, 50+ page analysis summarizes the state of the crypto market throughout the year and offers insights and predictions for 2020.
Here are the key highlights from the Chinese-language version of the report:
1. Cryptocurrency Market Cap Grew 44.1% in 2019
The total cryptocurrency market capitalization rose steadily throughout the year, climbing from $120 billion in January to $180 billion by December—a 44.1% increase. In late June, Bitcoin (BTC) briefly surged to $13,000, pushing the total market cap to a peak of $350 billion.
2. Bitcoin Was the Top-Performing Asset of 2019
The report compared BTC's performance against traditional assets like the S&P 500, gold, and silver. 2019 was a standout year for digital asset investors: Bitcoin delivered a 95% return, far outpacing the S&P 500 (29%), gold (19%), and silver (16%).
Looking at the entire decade (2010–2019), Bitcoin was unsurprisingly the best-performing asset, generating an astonishing 90,000x return.
3. The Best Time to "Stack Sats" Is Now
CoinGecko highlighted the growing "Stacking Satoshi" trend within the global crypto community.
For instance, a daily $5 investment in BTC starting in 2014 would have totaled $10,795 by the end of 2019. That investment would have yielded 15.5 BTC, worth roughly $124,300—an 11x return.
The report concludes that even if you missed earlier opportunities to dollar-cost average into BTC, now is an excellent time to start "Stacking Sats."
4. Bitcoin's Market Dominance Rebounded to 71.5%
2019 saw a strong recovery in Bitcoin's market dominance, which rose from 56.3% at the start of the year to 71.5% by year-end. XRP saw the largest decline, falling from 12.5% to 4.6% (a 7.9 percentage point drop). ETH's share decreased from 12% to 7.7%. USDT climbed two spots in the market cap rankings, moving from #6 to #4.
5. Performance of the Top 5 Cryptocurrencies by Market Cap
Among the top five cryptocurrencies, Bitcoin posted the strongest 2019 performance with a 95% gain. The others recorded the following returns: ETH (-2%), XRP (-45%), BCH (+38%), and LTC (+37%). The average return for the top five was approximately 20.6%.
Six new cryptocurrencies entered the top 30 by market cap in 2019: BNB, LINK, LEO, CRO, BAT, and HT.
6. Explosive Growth in Crypto Derivatives
The cryptocurrency derivatives market saw explosive growth in 2019. The number of derivatives exchanges increased twelvefold, with major spot exchanges like Binance, Kraken, and Bitflyer entering the space. The number of spot exchanges also grew, from 270 at the start of the year to 400 by December.
BTC perpetual swaps remained the most popular derivative product, with BitMEX leading the market with a 52% share.
7. USDT Maintained Its Dominance
In 2019, USDT was the only major stablecoin to increase its market share. Among the top five, the shares of USDC, PAX, TUSD, and DAI all declined. TUSD saw the steepest drop and was overtaken by PAX. GUSD fell entirely out of the top five.
8. Major Acquirers in the Crypto Industry
Since 2013, the cryptocurrency industry has completed 350 transactions worth over $4 billion. The three largest acquirers are Coinbase, Kraken, and Binance.
The most active category for acquisitions was data services (44%), followed by exchanges/custodial wallet services (20%) and financial services (16%). Acquisitions of derivatives exchanges also emerged as a trend, exemplified by Binance's purchase of JEX and Kraken's acquisition of Crypto Facilities.
CoinGecko summed up 2019 with the phrase "First they doubt it. Then they join in," highlighting the entry of traditional players like EY, JPMorgan Chase, Bakkt, Nike, Square, and Rakuten into the crypto space.
9. Key Events to Watch in 2020
CoinGecko identified six major events for the crypto industry in 2020:
1. Bitcoin halving at block height 630,000 (around May 24);
2. Launch of Libra's wallet, Calibra;
3. Ethereum 2.0;
4. Consensus 2020 in New York (May 11–13);
5. Devcon 6;
6. China's central bank digital currency (DCEP).
10. DeFi Breakthroughs
CoinGecko believes DeFi will redefine finance in 2020, with the total value locked (TVL) expected to reach $1 billion. Four key areas of advancement are anticipated: 1) More product offerings; 2) Emergence of benchmark interest rates; 3) Rise of DAOs; and 4) Regulatory developments.
The report also analyzes developments in Ethereum 2.0, dapps, masternode coins, and non-fungible tokens (NFTs) during 2019.