It was not so long ago that the word “cryptocurrency” was still an unheard concept. Fast forward to today and we see this method of trading taking the world by storm. Cryptocurrency has become more than just a buzzword across traders and has sped itself into something larger than life.
By now, there are a number of people who trade in cryptocurrency and a lot more who are aware of how much it has changed the course of trading exchange. Looking back, it has only been five years since cryptocurrency was publicized and yet, we have seen such a rapid entropy within the crypto world. As we take a look at how cryptocurrency has evolved, let us observe the crypto currency market growth over five years.
Bitcoin was the first cryptocurrency that started out in 2009 as a bid to provide a decentralized mode of exchange among traders. Four years later, cryptocurrency markets had started emerging, with only 7 cryptocurrencies listed by April 2013: Bitcoin, Litecoin, Peercoin, Namecoin, Terracoin, Devcoin and Novacoin.
At that time, Bitcoin had a market cap of $1.50 billion holding 94.2% of the market dominance with Litecoin being in second place with a market cap of 4.7% ($74.4 million). The combined crypto market cap was estimated at $1.59 billion
Over the years, only Bitcoin and Litecoin remain in the top whereas the other five have been dissipated over time.
The Altcoin Craze:
A year later in 2014, there were a total of 237 cryptocurrencies holding a net market cap of $6.37 billion- which is a whopping 300% increase over the last year.
With more prominent altcoins such as Ripple (currently with a market cap of $20 billion) and Dash (currently with a market cap of $2.5 billion) taking hold, there was a burst of newer coins for the digital currency exchange market online. This also lead to listing of many ICO projects which were nothing short from being scams.
One of the most controversial cryptocurrencies that was born at this time was the Dogecoin. With a $34 million market cap, the meme based cryptocurrency threw the market off balance and highlighted the immense volatility of the crypto market.
The Big Bear
Between April 2015 and April 2016, there was a prominent down period with the market cap dropping by 44% to $3.5 billion. In spite of the bearish market, there were a few altcoins which had emerged in the market and have grown to rank amongst the top 20 coins. Names such as Bitshares, Stellar, Bytecoin and others emerged during this time of crisis.
Back then, there were 545 different cryptocurrencies released in the market.
A New Player enters the Game
During 2016, there was a rise in the global market cap to $8.4 billion in cryptocurrencies. This positive boost took place after a long fought dip in the prices. At the time, there were a total of 563 coins in the online cryptocurrency investment market.
During this time, Ethereum (launched in 2015), had risen to become the second largest crypto with a market cap of $700 million in 2016. Ethereum climbed up the charts quickly because it offered various new features enabling quicker transactions.
The Advent of ICO Tokens and Privacy coins
Following the crypto currency value exchange trend, there has been a rise in Initial Coin Offerings (ICO) in 2017. This was a method that was used to generate funds for emerging cryptocurrencies or other digital assets. With this, the number of varieties of coins rose to 767, which contributed to a global cryptocurrency market cap of $35 billion.
The Recent tale
As of April 2018, there are 1560 cryptocurrencies in the global market, having a market cap of a whopping $270 billion. Although there was a recent bear market, the increase in the global cap by 667% shows that there exists little to stop the traditional crypto currency investments, as well as the ICO, from dominating the market field.
Bitcoin currently has a market cap of $121 billion, dominating 44% of the total market. This is much less than what it started off as, but it still holds down strong.
The Final story
With so many types of cryptocurrencies taking the world by storm, there are a number of methods for trading cryptocurrency. From the traditional methods of dealing in cryptocurrency, to exchanges such as Digital Ticks, whose new method involves handling a commodity-based transaction throughout the system, there have been more innovative ways to grow and develop cryptocurrency into a field of market dominance.
As we come to the conclusion of how cryptocurrency has changed the face of trading in only 5 years, we hope to find more innovative and dynamic methods of developing a fast, reliable and secure method of trading. Cryptocurrency provides a stepping stone for traders to look at new horizons in the global market reach.