Bitcoin (BTC) 2020 has been a fantastic year, but how are other cryptocurrencies evolving? Let’s see how some of the best market value cryptocurrencies can do this.
First, Bitcoin has risen significantly since January 1, as the price has risen from $ 7,195 to $ 28,422.
Bitcoin’s price has risen 290% in 12 months, better than all major stock indices and most stocks except a select few, including Tesla (TSLA).
The main catalysts for Bitcoin’s growth have been increasing institutional demand, favorable economic conditions as a result of a liquidity injection from the central bank, and a weakening of the US dollar.
BTC / USD monthly chart (Coinbase). Source: TradingView.com
A combination of three macro factors drove Bitcoin’s growth in October. Finally, large enterprise-focused platforms, including CME and Grayscale, experienced a huge increase in volume and influx, which has accelerated Bitcoin’s growth.
ETH price development has been strong through 2020, despite the recent recession against Bitcoin.
Ether 2020 started at $ 128 on major stock exchanges and peaked at $ 748 on December 30th.
The main driver for ether growth in November was the launch of Eth2. After reaching the deposit limit of over 400,000 ETH, Eth2 launched.
Eth2 is a major network upgrade for Ethereum as it expands blockchain significantly over time. Without Eth2, Ethereum can only process 20 transactions per second. With Eth2, this number rises to thousands of potential transactions per second.
Old school coins
In general, most older digital currencies (from 2017 onwards), including XRP, Cadano (ADA) and Stellar (XLM), lag behind the bitcoin price today.
Among the original currencies, XRP initially performed particularly well in November, when Bitcoin climbed to full-time highs.
XRP started the year at $ 0.1923 and rose to $ 0.9210, meaning a quadrupling in about 11 months. But when BTC exceeded $ 20,000, altcoins were hit hard, causing the XRP to fall to $ 0.52. Following the SEC lawsuit against Ripple, the XRP fell to a further $ 0.17.
Smart contract protocols
Polkadot, Chainlink, EOS and Tezos have also flourished since the beginning of the year. Each of the four cryptocurrencies associated with smart contracts was a significant catalyst for short-term growth as BTC rose to $ 20,000.
Weekly scheme with Bitcoin against Chainlink, Polkadot, EOS and Tezos. Source: TradingView.com
For example, Chainlink has benefited from the explosive growth of Decentralized Finance (DeFi). Chainlink is an oracle-focused blockchain network and the oracle goal is to transfer data to DeFi protocols.
Thus, when the total value of DeFi reached 16 billion dollars, Chainlink grew, like many other DeFi-related tokens.
Despite various incentives, Polkadot, EOS, Tezos and Chainlink have lagged behind Bitcoin in growth since the beginning of the year. The main culprit behind the subdued price movement was Bitcoin’s soaring past $ 20,000, which caused altcoins to plummet.
Specialty tokens such as Wrapped Bitcoin, USDC and Tether have also grown significantly in market value. These tokens are used primarily in DeFi protocols, and the rapid increase in user activity has made each token endemic to the DeFi ecosystem.
Especially in the fourth quarter of 2020, Tether’s market value increased. According to the Cointelegraph, Tether, the most widely used stack coin in the cryptocurrency market, is estimated to have exceeded $ 20 billion.