More than half the year is behind us and the cryptocurrency ecosystem continues to move forward, showing relentless growth over the last six months. 2019 has also seen a new theme arise as speculators believe the cryptocurrency ecosystem is experiencing an influx of institutional interest and regulatory crackdowns. A variety of cryptocurrency research reports analyzing the first two quarters of the year show the space has seen a lot of growth, despite regulatory headwinds.
The Cryptoconomy 2019: Institutionalization, Facebook and Exchange Tokens
Coinshares and cryptocurrency corporation Circle have recently published very detailed research reports concerning the digital asset space over the last six months. Over the last few weeks, the market capitalization of all cryptocurrencies has ranged between $250-300 billion. The U.K.-based firm Coinshares’ H1 report says that the last six months should be considered a net positive for the young industry. “The continuing professionalisation of the protocol services and corresponding technologies has been impressive and most assets have reacted by recovering substantially from last year’s brutal bear market,” explains Coinshares’ H1 study. It notes that there’s been “no shortage of speculation” when it comes to people guessing what’s driving the rally.
Coinshares’ study shows data on H2’s top five BTC markets by volume, volume by fiat pair, and volumes by geography.
The research also shows that retail interest in BTC is “relatively tepid compared to 2017.” This makes Coinshares’ believe the H1 recovery was “largely driven by the long-awaited entrance of institutional money.” The firm says that the company’s sales division has “anecdotal evidence” that supports the institutionalization theory. Coinshares mentions financial incumbents like Fidelity and the Intercontinental Exchange (Bakkt) as institutional examples.