As Q1 is coming to an end, let’s have a look at the state of the crypto market and the main events that happened during the quarter.
Market trends in Q1
As of March 29, the combined market capitalization of all coins tracked by coinmarketcap amounts to $272 billion. This is a drop of 67% from the all-time high of around $830 billion reached on January 7th. Since early January, the market has been on a general downtrend, falling fast until the quarter low of $279 billion on February 6th, before a small rebound that lasted until mid-February. Since then the market has been trading in a range defined by February’s high and low with a bearish bias. On the last open day of the quarter, the whole market is taking a new dive with Bitcoin back to the $7,200 area.
Interestingly, Bitcoin BTC dominance has been back on the rise following the sharp drop seen in H2 2017 (from 85% to about 40%), and then around the turn of the year (all time low share of market of 33% on January 14th). It is currently established at 45% and rising. Over time, Bitcoin’s dominance has been disputed mostly by Ethereum (highest share of market: 33.5% on January 29th) and Ripple (16% on January 16th).
In terms of rankings, Bitcoin firmly occupies the first position. After fighting with Ripple during the XRP mania, Ethereum is back to its second place with a decent buffer. Bitcoin Cash as number four, is the last one with market cap above $10 billion. From 5th position onward, the rankings are more disputed, with EOS, Cardano, Stellar, NEO and IOTA all within a $3 to $5 billion market cap.
Not all coins are created equal and this quarter more than ever, the relative value and perception between them have been strong drivers of performance. Late December and early January was all about the rise of Ripple, taking the second place briefly before returning it to Ethereum. The trio has not changed since then. Early January also saw the strong performance of Cardano and Stellar, the later a direct competitor to Ripple. Initially out of the ranking, NEO, a Chinese blockchain made a strong entry and now ranks 7 to 9th. Finally, EOS has made one of the most constant progression, taking the 10th position at the end of January (kicking TRON out of the ranking) and slowly making its way up since then. Overall, it is interesting to note that besides Bitcoin which remains clearly number one, banking on its foundation and media reach, most of the top 10 coins is now made of second (Ethereum and alike) or third generation tokens (Ripple, Cardano, EOS …). It is a clear sign to us that the industry is maturing and that investors are increasingly aware of Bitcoin’s shortcomings and betting on more advanced blockchains.
January 7th Snapshot:
January 28th Snapshot:
February 28th Snapshot:
March 25th Snapshot: