CoinGecko Q3 2020 Quarterly Cryptocurrency Report: Full Report

Decentralized Finance (DeFi) has been very prominent this summer. Other than the minor dip in mid-September, we have seen a continuous uptrend in the total crypto market cap since the March crash.

In Q3, we also saw several new decentralized exchanges gaining popularity, fueled by the much-hyped yield farming trend kick-started by Compound. Decentralized exchanges continue to grow at a much faster rate than its centralized counterparts.

There is much to unpack in the CoinGecko Q3 2020 Quarterly Cryptocurrency Report.

Here are some of the main highlights:

Market Capitalization continued to grow in Q3 by 31% (+$75b).

The price of bitcoin grew marginally (+8%) and reached a new peak at $12,272 on August 18th.

Over $9 billion capital inflow which was propelled by yield farming movement in the DeFi scene.

Uniswap strengthens its dominance as DeFi gains popularity.

Market Capitalization continued to grow amidst September uncertainties

The crypto markets experienced positive growth of +31% in market capitalization and +34% in trading volume.

However, towards the end of Q3, market uncertainties (COVID-19 and U.S. elections in the upcoming November) reinjected fear into the markets and trimmed Q3 gains.

The price of bitcoin grew, reaching a new peak at $12,272

We are seeing a record-breaking period for Bitcoin (BTC) since the crypto winter of 2018. This is the first time Bitcoin has stayed above the $10,000 benchmark for a sustained period of time, tallying at 65 consecutive days.

Q3 also saw the price of Bitcoin reaching a new peak at $12,272, almost reaching the 2019 high of $12,996. Bitcoin price has been up 50% year-to-date.

Over $9 billion capital inflow in this quarter due to yield farming movement

Q3 2020 was likely the period of time where capital inflow to the Ethereum (ETH) blockchain is at its largest to-date since inception.

Impressively, over $9 billion flowed into the space in this quarter alone, with Tether (USDT) accounting for nearly two-thirds of the total inflow.

Uniswap strengthens its dominance of the DEX market

In Q3, the DeFi & yield farming hype pushed trading volumes on decentralized exchanges up to new highs. Monthly trading volumes for the top 10 DEX increased from $3.8 billion in July to $30.4 billion in September.

Throughout this period, Uniswap & Curve both remained as the dominant trading avenues.

A new contender, Sushiswap (which is a fork of Uniswap), managed to grab up to 8% of market share, but it remains to be seen if it can continue to innovate.

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