Liquidity of Top Cryptocurrencies Is Stronger Than During 2017 Bull Market

Published on by Cointele | Published on

Over the past year, BTC has also seen its market capitalization grow by approximately 200%.ETH trade volume consistently gains year-over-yearThree years ago, Ether was the second-most traded crypto asset, with a daily volume of $18.46 million.

Since 2018, Ether has been generally ranked as the third-most traded crypto asset, despite being one of the few to have posted a year-over-year increase in trade volume as of mid-February 2019, with a gain of 4.2%. Despite the increase in market trade activity, Ether's market capitalization had shrunk by 86% during the same year.

The expansion in trade activity far surpassed Ether's growth in market cap over the same period, with ETH capitalization increasing by approximately 140%. In 36 months, ETH's trade activity has increased by roughly 1,250 times.

XMR falls from top 20 crypto assets by volumeAfter being the third-most traded crypto asset with a daily volume of $4.81 million as of Feb. 15, 2017, Monero saw the weakest 12-month gain in liquidity among the top six markets by trade activity.

The 2018 bear market saw XMR's trade volume decline by 39% in 12 months, with $52.42 million worth of Monero changing hands during Feb. 15, 2019 - ranking XMR as the 21st-most traded cryptocurrency.

The same year saw Monero's market cap fall by 83%.Despite producing a relatively weaker recovery than other leading markets, XMR has seen a 140% gain in trade volume year-over-year, with Monero pairings having produced $129.99 million worth of trades during the past 24 hours.

Litecoin saw the largest gain in trade activity during 2017, ranking fourth by volume with $2.09 billion worth of LTC changing hands 12 months later following an increase by 776 times in trade.

LTC suffered the heaviest decline in volume among the top markets during the 2018 bear season, with the fourth-most traded crypto asset seeing a 50% drop in trade activity to post a 24-hour volume of $1.04 billion as of Feb. 15, 2019.LTC still ranks fourth by trade activity, with Litecoin pairings producing $5.57 billion worth of trades in the last 24-hours - with a year-over-year volume increase of 435%. Litecoin's market cap has also grown by 100% over the past 12 months.

Xu expects crypto trade volumes to grow at a faster pace in the coming years, predicting that 2021 will see trade volumes that significantly surpass the trade activity of 2020.By contrast, the COO of cryptocurrency payments platform Crypto.com, Eric Anziani, identified a surge in trade activity during the middle of 2019 before market activity slowed toward the end of the year.

"In 2018, overall adjusted industry trading volume dropped significantly as the market entered a prolonged bear period. Retail volume dried up first followed by institutions. In 2019, volume recovered across the board and increased up to 5x in the months of May/June 2019 compared to the same time in 2018, riding on the BTC price rally culminating in July 2019. We did observe a slowdown of global trading activity towards the end of 2019.".

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