CoinGecko has published a crypto report on the first quarter (Q1) of this year.
The 55-page report is entitled “CoinGecko Quarterly Report for Q1 2020” and provides an overview of the status of the crypto industry in the first quarter of 2020 with data on spot markets, derivatives markets, global events, traditional markets and more.
CoinGecko is an aggregator of data from the crypto world and in particular from exchanges and financial markets. A first conclusion they have drawn from this analysis is that Binance now dominates almost all available metrics and that its aggressive growth strategy seems to be paying off at the moment.
For instance, Binance Futures has gained a lot of space in the derivatives market, gaining a significant market share from 22.9% to 38.0%, and dethroning BitMEX as the leading derivatives market in terms of Bitcoin Perpetual Swap trading volume.
As far as spot trading is concerned, it has consistently maintained an average of between 50% and 75% of the total real volume of the Bitwise 10 Index.
In terms of web traffic, Binance attracts 29% of all traffic to the top 20 crypto exchange sites, about 4 times more than its closest followers in this ranking, Bithumb, Coinbase and Upbit.
Another interesting element emerged from the report is that 54% of crypto users do not trust the banking system and say they are ready to do without it.
This is a survey conducted by CoinGecko on 700 users, about half of which said they are so familiar with DeFi tools that they can completely get rid of banks because they don’t trust the banking system.
It also emerged that Bitcoin may not be considered a safe haven, despite being considered as such by 63% of people who voted in a survey conducted by CoinGecko on Twitter.
In fact, the report shows that the degree of correlation of BTC price changes at 30 days compared to the S&P 500 index was very high (0.9), although the correlation index to gold at 5 years is 0.6. It is likely that the latter index is one of the main reasons for many people to see Bitcoin as a gold-like safe-haven asset in the long term.
Finally, the report explains that the overall capitalization of the crypto market this quarter was only 5% lower due to the panic generated by the COVID-19 pandemic, wiping out all the gains made earlier in the year.
Overall during the quarter, the top 5 cryptocurrencies saw the following price changes: Bitcoin -11%, Ether +3%, XRP -10%, BCH +7%, BSV +70%.
CoinGecko co-founder Tommy Lee said:
“This quarter is one that we most definitely want to erase from memory. Not only was the world ravaged by the COVID-19 pandemic, we saw massive losses in the traditional stock and crypto market. However, with every massive drop in price, there is always an opportunity to buy cryptocurrencies for cheap. As we enter Q2, we hope that the COVID-19 situation will subside and markets will improve”.
