Latest Trends in Crypto Highlighted by Circle Research

Latest Trends in Crypto Highlighted by Circle Research

Circle Research, a division of the parent company that also includes Poloniex Exchange, Circle Invest and USD coin (USDC), have released their free Q2 2019 report that focuses on the most recent trends, innovations and projections in the cryptocurrency sphere. The metrics reported show strong performances in Bitcoin usage and rising trading volumes from derivatives platforms as well as both custodial and non-custodial exchanges.

The 81 page report provides statistics and analysis on developments occurring within the second quarter of 2019 by breaking down the information into six key areas – Bitcoin, Ethereum, DeFi/Open Finance, Institutionalisation, stablecoins, and token offerings (STO, ICO, IEO, IFO).

Quarter over Quarter Increases

With the price of Bitcoin rising to a degree not seen since January 2018, it will perhaps not come as a surprise to many that the figures show a quarter over quarter increase across a range of indicators.

Bitcoin’s future prospects are also discussed within the report with space devoted to the upcoming halving in May 2020, long term security, reorganisations, and briefly reviews proposals for enhanced features and Layer 2 solutions.

According to the research, activity for Ethereum over the same period was slightly more mixed but still showed relevant increases.

Looking forward, the report looks at the Ethereum 2.0 roadmap and the development teams working on enhancing the protocol.

The authors of the document, Ria Bhutoria and Wilson Withiam, highlight a number of points from the four other sectors of the research including:

  • DeFi: Loans originated across Maker, Compound, Dharma, and dYdX rose by almost 140% relative to previous quarter.
  • Institutionalisation: Assets under management at Grayscale were up 125% with 84% of the inflow being from institutional investors.
  • Stablecoins: Although Tether (USDT) remains dominant, USDC saw the biggest increase in growth, rising 48.7%.
  • Token offerings: Initial Exchange Offerings (IEOs) have taken a lead over Initial Coin Offerings (ICOs) but the median return from the largest IEO tokens compared to the offer price has been a disappointing -40%.