The most recent report of Coin Metrics about the 2019 shows positive figures in the metrics, not only for bitcoin, but also to the rest of the cryptocurrencies. The company analysis of the ecosystem analyzed the behavior of the criptoactivos during the past year and this is supported in four categories: valuation, use and adoption, health and safety, and economy.In its report “State of the Network by 2019, the year in review”, published January 1, Coin Metrics come to the conclusion that the past year was good for the cryptocurrencies, taking into account that the majority of them recorded increase in prices, the indexes of adoption and decline in volatility. All positive signs of face to 2020.”Despite the drop at the end of the year, the majority of the main cryptocurrencies ended up in fact significantly above that of the year in terms of price,” the report says. About it points out that bitcoin (BTC) ended the year with a rise of 90% while Ether (ETH) ended in red, with a contraction of 6%.Some of the best results in terms of price include Chainlink, which increased by 513% for 2019 and Basic Attention Token (BAT) increased by 45%. After the launch of the bet Tezos in Coinbase Pro and Binance, XTZ ended the year with an increase of 182%.Most of the main cryptocurrencies ended the year with indexes positive: Source: Coin Metrics.
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The stablecoin shot up in popularity
The stablecoins strengthened during 2019, as it increased their ratings as a means of exchange. In this sense, Coin Metrics showed that while the market capitalization is closely linked to the price of most of the cryptocurrencies, the same is not true with the stablecoin. Tether on Ethereum (USDT_ETH) is a great demonstration of this, since in 2019 was an increase in market capitalization of 3,700% surpassing Tether in the blockchain Omni which fell 39%. Two other stablecoins, PAX and USDC, grew 65% and 100%, respectively.The report allows you to appreciate the signs that show that the cryptocurrencies are being used as a store of value. Around this, the analysis determines that a decrease in the percentage of active provision may indicate that a criptoactivo is increasingly used as a safe haven for value, while an increase in this metric, it could be a sign that an asset is being used more as a medium of exchange. In that sense indicates that decreased the amount of Bitcoin active in the past 30 days by 2019, from 14% to 9%, while that ETH decreased from 32% to 24%. However, the active bid of stablecoins ranged between 50% to 75% showing that they are rapidly becoming media of exchange preferred.In addition, all stablecoins of the sample increased considerably. XTZ and LINK saw more than 100% of the profits in the year. Only BSV, XRP and ZEC experienced declines. BSV, on the other hand, recorded a large increase of the active addresses of more than 600%.
A sea of reservation value
A currency, which you can manipulate your offer, is adjusted to an economic system that encourages spending and borrowing and discourages saving, as he wrote Saifedean Ammous in his book, “The Bitcoin Standard”, in which also notes that consumers feel the need to spend the money before, because it loses its value in the long term due to the interference of the government and the central bank.The bitcoiners, by contrast, continued to show throughout the 2019 preference for refuge in Bitcoin as a store of value from the economic point of view, saving for the future, understanding that it is more profitable to do that buy as much as possible as soon as possible. Coin Metrics use metrics to prove it, because in terms of the capitalization effect (which looks at the value of each currency the last time it was transferred), recorded that the compounding effective of bitcoin increased 28% during 2019. As its market cap grew by 98%, this means that most of the investors of Bitcoin will be left with their coins instead of getting benefits.In addition, the market capitalization to the value achieved (MVRV) is a way of determining how many investors take the profits. In this sense, a low figure suggests that investors have earnings minimal (or are on the point of drowning if the figure is negative). In the case of Bitcoin, the figure 1.33 indicates that the owners had increasingly more benefits throughout the year. For ETH, the figure was 0.61, suggesting that investors are increasingly under the water. BSV fell for a time, but recovered to 1.7 at the end, suggesting that it ended well in terms of profit.The metric of market capitalization to the value carried out shows that the owners of Bitcoin had the greatest long-term benefit. Source: Coin Metrics.
Bitcoin and its volume of transactions in 2019
BTC mobilized a volume of transactions during 2019 that grazed at historic highs, keeping the pace with a count of more robust in comparison with previous years. In general, the value transferred through BTC reached 10 times the amount that Venmo moved in 2018. The figures may indicate that the amount of money that the network processes daily as could cause headaches for competitors.The data of Coin Metrics were discussed on Twitter by the crypto influencer Anthony Pompliano, who provided the data that Venmo Paypal offers transactions, snapshots, still can’t catch up with the growth of the network of Bitcoin.
“Bitcoin made 673.000 millions of dollars in transaction volume adjusted chain in 2019, according to @coinmetrics. 673.000.000.000 of dollars in a single year. That is 10 times what Venmo made in 2018. It is almost impossible to deny the popularity of Bitcoin worldwide.”Pomp ? (@APompliano) January 2, 2020
Bitcoin did $673 billion in adjusted on-chain transaction volume in 2019, according to @coinmetrics.$673,000,000,000 in a single year.That is 10x what Venmo did in 2018. It is nearly impossible to deny Bitcoin’s popularity globally.— Pomp ? (@APompliano) January 2, 2020
The data of Coin Metrics also show that in 2019, the BTC was established not as a means of payment for everyday, but as a powerful tool for the transfer of value to a large scale. The network also suffered less congestion, which led to easily transfer hundreds of millions per day. For example, BTC and ETH saw the highest value of transfer average daily annual in USD 1.8 B and USD 364M per day, respectively. USDT_ETH, however, had the greatest growth, recording an increase of more than 60.000%.Also BTC and ETH led all of the assets in terms of the average annual count of transfers daily. However, the BSV and the USDT_ETH saw the biggest increases, with a 19.254% and a 60.647%, respectively.On the other hand BTC has a great advantage over all other assets in terms of preference for institutions or institutional investors. On average, BTC ended the year with more than 11,000 addresses with a balance of at least $ 1 million, while ETH finished with more than 1,800. No other active ended up with more than 700.In the analysis of the active addresses, the report found that the number of addresses with a balance of at least $ 10 also increased for most of the major criptoactivos throughout 2019, another positive sign for the general adoption of the ecosystem of the cryptocurrencies.