CoinMarketCap recently released a general report on the development of the cryptocurrency market in the first quarter of 2020, highlighting some trends. The report is titled: “According to CoinMarketCap”.
As many know, CoinMarketCap is known as one of the best websites for cryptocurrency markets, rankings and price tracking. The report highlighted some keys and trends in the first quarter of 2020, which we will summarize below.
Q1 2020 trends according to CoinMarketCap in the cryptocurrency market
The first quarter was a turbulent time for participants in the cryptocurrency industry. According to CoinMarketCap, there was strong demand for cryptocurrencies at the beginning of the year. For example, Bitcoin peaked at $ 10,500 and the total market cap reached $ 305 billion in February.
However, as the number of COVID-19 cases soared and spread to a pandemic worldwide, all markets, including traditional ports like gold, collapsed before recovering in the days that followed.
While Bitcoin is constantly applying for “digital gold,” it can’t help but be affected, which causes people to question its safe haven status. Without a doubt, the most important event for the cryptocurrency industry at this point was the 43% drop in BTC on March 12.
Next, CoinMarketCap found that crypto markets are currently making up a good part of their March losses, but they still have some ways to go before they can recover at the price level we saw at the beginning of the quarter.
Were the trends for the first quarter of 2020 the same on the market?
According to the CoinMarketCap report, the cryptocurrency market was sort of a “mixed bag” this quarter.
While Bitcoin had relative losses of -9.78% in market capitalization; There were cryptocurrencies that gained considerable momentum. According to market capitalization, BCH (+ 10.48%), BSV (+ 76.0%), XTZ (+ 20%), LINK (+ 25.4%) and LEO (+ 26.83%) were able to leave the first quarter better than at the beginning.
In particular, BSV and BCH received a sudden surge in attention; The former rose 29 points and became the seventh most common crypto asset on CoinMarketCap. The latter rose by 14 points to tenth place. It can be assumed that this is due to the halving expected by these cryptocurrencies.
Market impact of the pandemic
The drastic decline in user traffic from China was noticeable. This coincided with the start of the global pandemic COVID-19 and a number of problems with Internet access at that time. CoinMarketCap provides more details on this point in its report.
What other trends stood out?
The CoinMarketCap report contained two interesting trends: a 43.24% increase in female users and a 46.04% increase in young users.
Within the segment of women as users, the regions of America and Europe grew by more than 50%. Exceptional growth of more than 80% among female users has been led by countries like Colombia, Venezuela, Romania, Greece and several others.
In terms of the segment of young users (between 18 and 24 years), the continent of Oceania recorded the highest percentage jump with 151.95%, followed by Africa with 91.47%. Countries where young users saw exceptional growth of over 80% include India, the United Kingdom, Spain and Mexico.
Despite the ups and downs, the CoinMarketCap report probably shows that the cryptocurrency industry is still emerging and evolving. In addition, this information underlines that there is more than Bitcoin in the world, although its dominance is undisputed.
However, according to this data analysis company, the blockchain revolution has a lot of untapped potential.
In addition, they found that it is too early to predict the role and fate of cryptocurrencies. This is because, depending on the economic and social climate in which they live, they have different meanings for different groups of people.