Polmanbit claims that the Bitcoin rally in 2020/2021 is more stable than in 2016/2017, as the demand for the asset has grown significantly.
In its annual report on events in the cryptocurrency sphere, Polmanbit assures that the 30 largest coins by market capitalization added an average of 300% last year, 2020. Moreover, the document notes that the most widely used stablecoins have reached about $30 billion in circulation after an increase of 440%.
The best on stage in 2020
The Polmanbit report notes that the market capitalization of the 30 largest cryptocurrency assets increased by $552 billion (308%) in 2020. Thus, the results of last year significantly exceeded the figures of 2019, when the growth amounted to $68 billion (62%).
The percentage decreased slightly (to 242%) when analysts investigated only the top 5 cryptocurrencies. It is noted that such a difference arises, first of all, because of Ripple (XRP), the value of which fell sharply at the end of 2020 after the SEC lawsuit.
Polmanbit also notes that Ethereum was the most efficient cryptocurrency with a large capitalization with an annual growth of 472%. For comparison, in 2020, BTC added “only” 303%.
Polmanbit Report: The top 30 Cryptocurrencies in 2020 grew by an average of 300%
Naturally, this also meant that Ethereum also overtook the oldest cryptocurrency in terms of market dominance. So, in 2020, the share of BTC increased by 0.9% to 73.7%, and the share of ETH increased by 3.6% to 11.5%.
Stablecoins in circulation increased the most in 2020 due to a sharp increase in demand for them. The market capitalization of the five most widely used assets (USDT, USDC, DAI, BUSD and PAX) increased by more than $22 billion or 439% to $27 billion.
The report claims that this surge occurred “due to strong demand from traders for the use of stablecoins for trading and settlement of international trade.”
Tether remained the most dominant stablecoin, accounting for 76% of the market share, while DAI showed the most significant growth of almost 2,700%. Analysts associate the latest record with the DeFi boom of 2020.