Bitcoin, stable coin and defi: the best performing crypto asset in 2020

Bitcoin is doing very well in 2020, but what about other top cryptocurrencies? Let’s see how some of the most valuable cryptocurrencies do it. First, bitcoin has risen sharply since January 1, with its price soaring from $7195 to $28422. Within 12 months, bitcoin’s price has risen 290%, outperforming all major indexes and most stocks, with the exception of a few stocks, including Tesla. The main drivers of bitcoin’s rise are the increase of institutional demand, the favorable financial environment brought about by the central bank’s liquidity injection, and the decline of the US dollar. BTC / USD monthly line (coinbase) source: tradingview.com, these three macro factors jointly contributed to the rise of bitcoin in October. In the end, trading volumes and capital inflows from major institutional platforms, including the Chicago Mercantile Exchange (CME) and grayscale, have soared, accelerating the rise in bitcoin. Ethereum Ethereum prices are strong throughout 2020, despite the recent standstill with bitcoin. Ethereum has been trading at $128 on major exchanges since 2020 and peaked at $748 on December 30. Throughout November, the main driver of Ethereum’s rise was the release of eth2.0. After the deposit exceeded the threshold of 400000 Ethereum, eth2.0 was launched. Eth2.0 is a major network upgrade for Ethereum as it will exponentially expand the blockchain over time. Without eth2.0, Ethereum can process less than 20 transactions per second. With eth2eth2.0, this number can increase to thousands of transactions per second. Judging from the year to date performance of old-fashioned Shanzhai coins, most of them including XRP, cadano (ADA) and stellar (XLM), are inferior to bitcoin (2017 or earlier). Of these counterfeit coins, XRP initially performed particularly well in November, as bitcoin hit an all-time high. In early 2020, the price of XRP was $0.1923, peaking at $0.9210, quadrupling in about 11 months. However, after the SEC filed a lawsuit against ripple, XRP fell sharply to as low as $0.17. Since the beginning of this year, Polkadot, chainlink, EOS and tezos have also achieved gains. When bitcoin rose to $20000, all four cryptocurrencies related to smart contracts rose sharply. Comparison of bitcoin weekly chart with chainlink, Polkadot, EOS and tezos source: tradingview.com. For example, chainlink has benefited from the explosive growth in the field of decentralized finance. Chainlink is a blockchain network with Oracle as its center. The goal of chainlink is to provide data for defi protocol. As a result, chainlink and many other defi related tokens rose as the total value of the defi lock-in reached $16 billion. Despite various drivers, Polkadot, EOS, tezos and chainlink have lagged bitcoin’s gains so far this year. The main reason why the price fluctuation tends to be gentle is the rapid rise of bitcoin after breaking through $20000, which leads to the fall of counterfeit currency. The market value of special tokens such as wbtc, usdc and tether also increased significantly. These tokens are mainly used for the defi protocol, and the rapid increase of user activity makes each token unique in the defi ecosystem. Tether’s market value has just exceeded $20 billion! This amazing milestone is another proof that tether is the most liquid, stable and reliable currency! — Tether (@Tether_ On December 18, 2020, in particular, tether’s market value increased rapidly in the fourth quarter of 2020. Tether is the most widely used stable currency in the cryptocurrency market, valued at more than $20 billion, according to cointegraph. As a blockchain news information platform, the information provided by cointegraph only represents the author’s personal views, has nothing to do with the position of the Chinese platform of cointegraph, and does not constitute any investment and financial advice. If you need to reprint it, please contact the relevant Chinese staff of cointegraph.

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