Binance, the world’s largest crypto exchange, released a report showing the most actively traded crypto assets in 2020.
The Crypto Trends 2020 report on Binance says that Binance recorded an all-time high of $ 3 trillion in total transaction volume. The total market cap of the crypto market has increased more than 3.3 times from an average of $ 193 billion to over $ 640 billion, leading to a dramatic expansion in the crypto market.
This has been one of the most important years in the history of blockchain and the crypto world. Despite the global epidemic, it has caused a strong influx of interest, attention and capital from daily users and institutions to crypto.
Bitcoin (BTC), Ethereum (ETH), (XRP), Binance Coin (BNB), and Cardano (ADA) were the most traded cryptocurrencies by crypto whales on the OTC market. This is because Binance OTC gives investors access to deeper liquidity, quick reconciliation and quick quotes.
The most popular trading pairs on the spot exchange were BTC / USDT, ETH / USDT, ETH / BTC, XRP / USDT and BTC / BUSD, while the most popular currencies held on the exchange were BTC, BNB, and ETH.
In peer-to-peer exchange, popularity and highest trading activity came from Asia, Africa and Eastern Europe, with traders focused on bypassing transaction fees and sending or receiving low-cost cross-border payments.
In the UK, Africa and Russia, and the Independent State Communities, Binance has recorded more activity than merchants buying and selling cryptocurrencies using fiat gateways through bank accounts, credit and debit cards.
Bitcoin is still the market leader, with 66% dominance, but Ethereum has seen impressive growth, especially due to its central role in the DeFi market.
Crypto derivatives and crypto loans are increasing in popularity
Offering one of the largest futures contracts in the crypto industry, Binance Futures has become the preferred option for many traders. The most traded futures pairs were BTC / USDT, ETH / USDT and LINK / USDT, while the most traded leverage tokens by volume were LINKDOWN / USDT and XRPUP / USDT.
Additionally, more crypto holders used Binance financial services such as Binance savings, Staking, and Liquid Swap in 2020 to take advantage of lending services. The top five Cryptos used for crypto loans are determined as two stablecoins, USDT and BUSD, followed by KAVA, SXP and NEO.
Crypto loans often feature attractive double-digit interest rates that are much higher than those seen with conventional loans. The market for crypto loans has grown steadily throughout the year. And it stands as an interesting alternative to traditional banking.
Institutions and the Crypto Market
Institutions and everyday users increased the growth of the crypto market in 2020, leading to parabolic rallies in Bitcoin and altcoins.
The number of corporate clients on Binance has increased by 46% since the end of 2019. Institutions are entering the crypto space at an unprecedented pace in history.
Binance stated that the adoption of stablecoin, crypto and DeFi infrastructure is also developing rapidly, further increasing the expected growth of the crypto market in 2021.