Coinshares, Circle Studies: The Crypto Industry Has Displayed Positive Growth Throughout H1 2019


  • Since the start of the year, a number of blockchain firms (including Sparkswap, Chainalysis) have been successful in raising large sums of money from various institutional investors.
  • A study released by Coinshares claims that retail interest in Bitcoin has dropped this year. Not only that, even the usage rate of BTC’s Lightning Network seems to have gone down considerably over the past few months.

As per research data available online, the first six months of 2019 have been extremely positive for the global cryptocurrency ecosystem — with a number of big-name players (such as Facebook, Walmart, Maersk) entering this domain. In this regard, it should be mentioned that crypto firms — Coinshares and Circle — recently released two separate reports related to the performance of this burgeoning market sector (covering the first six months of this year.)

Coinshares’ H1 study states that the last 180 days have been huge for the market, this is because most of today’s popular crypto assets have once again begun to surge. For example, BTC recently scaled up beyond the $10k mark once again after having stooped to a relative low of around $3,000 just 10 months back.

“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,”

The report also claims that compared to previous years, retail interest in BTC has been somewhat lukewarm all throughout 2019. Not only that, Coinshares’ research staff also believes that the recent crypto rally that we observed was because of institutional investors finally entering this market.

Lastly, the authors have pointed out that even though Libra has brought in a lot of undesirable regulatory scrutiny into this sector, they still believe that this increased attention will turn out to be a good thing for this market in the long run.

Demand of CME Bitcoin Derivatives is Currently at an All Time High

As mentioned earlier, Circle too recently released a detailed 80-page study regarding the growth of the altcoin market throughout 2019. For example, the above linked research document shows us that investor interest in Grayscale’s financial offerings as well as CME’s futures open interest and trade volumes is currently at its all time high.

On the subject, the study goes on to add:

“Grayscale recently provided a second-quarter update, showcasing continued strength since market lows at the end of 2018. Assets under management were up 125% quarter over quarter (q/q), driven by an increase in underlying prices, among other factors. The portion of inflows from institutional investors has been experiencing step function growth, rising from 59% in 3Q18 to 84% in 2Q19 — Grayscale notes this figure was dominated by hedge funds.”

Other Key Findings of the Study

The recent increase in investor interest towards CME’s crypto futures volumes is due to increased interest from traditional players.

Some of the recent regulatory developments that we have seen over the past few months have helped in the creation of a stronger global cryptonomy.

As we move into the future, more and more people will look to make use of exchange tokens — since they provide their owners with a host of benefits such as discounted trading fees, rewards, governance systems, etc.

Since the start of the year, a number of crypto-centric companies have been able to raise a lot of money via seed funding rounds. Some of these firms include: Sparkswap ($3.5 million), Cambridge Blockchain ($3.5 million), Flexa ($14.1 million), Chainalysis ($6 million), and Celo ($25 million).

As things stand, there currently exist $6.5 billion worth of digital assets that are locked up in (proof-of-stake) staking networks.

Non custodial exchanges have seen a 32% increase in their avg. trade volumes over the course of 2019.

There has been a decline in user activity associated with BTC's Lightning Network throughout the past 6-8 months.

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