We have super exciting news! We have just published our Q2 Quarterly Cryptocurrency Report! You should DeFi-nitely keep reading on to learn about our findings!
Download the full report here
Derivatives Trading Volume On A Downward Trend
For Bitcoin’s perpetual swap, both BitMEX and Binance saw heavy declines (11.3% and 4.3% loss respectively) in terms of volume dominance.
Meanwhile, Huobi ended with an 18.7% volume dominance, which was impressive for a newcomer.
Open Interest On The Rise
Despite the overall decrease in volume for BTC perpetual swap derivatives trading, open interest volume doubled in Q2.
BitMEX lost 11.6% in dominance while Binance Future and Bybit caught up, gaining 2% and 4.6% respectively.
Even so, BitMEX still remained as the market leader. BitMEX’s open interest grew $204M (44%) despite its decrease in market dominance.
Tokens That Are DeFi-ying The Odds
We can safely say that Q2 was extremely DeFi-centric. The price return of 4 out of 5 DeFi tokens was higher than other Top-5 cryptocurrencies and Top-5 exchange tokens.
Aave’s price return was the highest among the Top-10 DeFi tokens with a whopping gain of 712%. This was impressive as Aave was only launched in Jan 2020 and it’s now the 4th largest DeFi protocol in terms of Total Value Locked.
Also, we can see that more users are now active in trading DeFi tokens. Compound (COMP), which only went live on 20th June 2020, has quickly risen to the Top-30 coins in terms of market capitalization.
What led to the increase in trading of DeFi tokens?
It may be due to the Yield Farming and Liquidity Mining craze.
To put it simply, yield farming is when you put in your assets to generate returns, much like how you’re able to earn interest off of your cash in the bank.
Liquidity mining is when you provide liquidity to essentially lend to the platform and in return, you’ll earn tokens of the protocol you deposit in.
Yield Farming 👩🏼🌾 + Liquidity Mining 💧 = 🤑💰🤑💰🤑💰
CoinGecko Virtual Meetup
In conjunction with the release of our second Quarterly Report for 2020 and recent Trust Score update with cybersecurity metrics, CoinGecko is back with Virtual Meetup #4!
Join in the Discussion, Free!
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