2020 began on a muted note with the global pandemic COVID-19 paralyzing almost every industry. As the number of cases skyrocketed around the world, all markets, including safer ones such as gold plummeted.
“Q1 was a turbulent period for participants in the crypto industry,” said a report published by crypto-asset information site, CoinMarketCap, which aimed to analyze how the crypto market has performed and what the notable trends are for Q1 2020.
Indeed, while the start of the year saw strong demand for crypto with Bitcoin reaching a high of $10,500 and total market cap hitting $305 billion in February, it dipped by 43% on March 12 plummeting to $3,900. On the same day, even the total crypto market cap hit a low of $150 billion, 57% lower than the previous month.
The report said that due to the volatility of the value of Bitcoin, people began to question its status as “a purported safe-haven asset.”
For instance, the report revealed that there was a drastic drop in user traffic from China. This might have been because the timing “coincided with the beginning of the COVID-19 global pandemic, [and] also timed with speculations around the Great Firewall and China’s suppression of online citizen reports concerning the pandemic that might have affected access to internet services,” it said.
However, despite the challenges amid global lockdown, growth from the female user segment saw a surge by 43.24% in Q1 of 2020. In specific, female users from the Americas and European regions grew more than 50%, and the growth of more than 80% in was led by countries including Colombia, Venezuela, Romania, and Greece.
In addition to women, the youth user segment witnessed an increase by 46.04% where the continent of Oceania saw the biggest percentage jump of 151.95%, followed by Africa with 91.47%. Countries that saw remarkable growth of more than 80% in young users included India, the UK, Spain, and Mexico.
“It is telling that our data shows how the crypto industry is still nascent and continuing to evolve,” the report said.
Furthermore, the report added that apart from Bitcoin, an increasing number of cryptocurrencies are proving to be more lucrative in the market.
“While Bitcoin dominance holds strong, other crypto-assets such as BSV and BCH have displayed abilities to outperform Bitcoin and global asset benchmarks like the S&P 500 Index,” it said.
Indeed, looking at these escalating numbers of female and young users, we can be sure to say that crypto continues to be a profitable industry for amateurs as well as established players.