Hello, Geckos!
We are pleased to present our first monthly crypto report!
We want to bring you up to speed to what is happening in the market and CoinGecko's Research Team will provide you with the latest market updates and trends.
For the month of July, we analyzed 3 datasets:
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Overview of the crypto markets
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Decentralized Exchanges (DEX),
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Decentralized Finance (DeFi) tokens.
(Download the full report here)
Below are the 5 key highlights of our report:
1. Market capitalization hit 2020-high, nears $320B
Top-30 cryptocurrencies market capitalization hit 2020-high at $319 billion, which broke the previous high of $292 billion in February.
Notably in July, the top-30 cryptocurrencies saw a 30% increase in their market capitalization and 45% increase in their trading volume. This contrasts with June’s subdued market where market capitalization went down 2% and the trading volume went down by 38%.
2. Bitcoin’s market dominance decreased while Ethereum’s market dominance increased
In terms of top-30 cryptocurrencies market dominance, Bitcoin (BTC) saw its market dominance decreased by 3% to 65.5%. Ethereum (ETH) had the largest gain amongst the top-30 cryptocurrencies with a gain of 1.9% to 12.2%
This was closely followed by Tether (USDT) and XRP (XRP) with a bump of 0.9% and 0.5% respectively.
The situation closely suggests that as the market capitalization surpassed its 2020-high, altcoins are gaining and eating into Bitcoin's market dominance share.
3. Decentralized Exchanges (DEX) trading volume surged $2.6B within a month, outperformed Centralized Exchanges (CEX) growth by more than 5X
In July, the top-6 DEX saw its month-on-month trading volume increased 217% to $3.8 billion. CEX trading volume increased as well but only by 41%. Top-6 DEX growth outperformed top-6 CEX growth by more than 5X.
For DEX market dominance, Uniswap grew 8 percentage points to 47%, dominating almost half of the market, followed by Curve at 24% and Balancer at 14%.
Bancor , Kyber Network, and dYdX have been losing DEX market share in July.
4. DeFi tokens rallied in July with LEND registering its highest monthly price return in 2020
The DeFi trend continued stronger in July with Aave (LEND) registering its highest monthly growth in 2020 (+137%), making it one of the most profitable cryptoassets in 2020 to date (+1779%).
It’s worth noting that DeFi tokens are outpacing the top-5 major cryptocurrencies, including Bitcoin and Ethereum.
However, Compound (COMP) saw its price decrease by almost 40%, trimming its year-to-date gains to only 71% due to constant sell pressure by liquidity miners locking in gains.
5. DeFi tokens saw trading volume increased to 2020 highs
Top-5 DeFi tokens trading volume in July registered monthly high of $24 billion, more than double the previous month. ChainLink (LINK) contributed 82% of the increase.
3 out of the top-5 DeFi tokens, namely Compound (COMP), Aave (LEND), and Synthetix Network Token (SNX), saw their volume rose over $700M. This was not coincidental as their native protocols were being actively used for liquidity mining and yield farming.
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Erina is CoinGecko’s market research analyst. Current expertise is finance and crypto - DeFi. Previously in research consulting and often did market analysis.
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