Goodbye dai and bitcoin sv. Hello Kyber and Kosmos.
An increase in volume in the crypto markets in the third quarter has changed the list of notable digital assets beyond Bitcoin and Ether that are most important to traders and investors. This change is reflected in CoinDesk 20.
In the last revision, based on data from the second and third quarters of this year, five assets were replaced with crypto assets, where the volume even exceeded the double-digit growth of the total market volume.
The CoinDesk 20 list is designed to represent the assets that are most important to the market. While other rankings use market capitalization, CoinDesk lists 20 crypto assets by market volume for two consecutive quarters, as reported by eight trusted crypto exchanges. The CoinDesk 20 represents the 20 assets with the largest consistent, trustworthy trading volume in crypto. These assets make up about 99% of the total volume of trusted exchanges and about 90% of the market capitalization of the entire sector.
The new assets are Algorand, Cosmos, Cardano, Kyber Network and Omg Network. On average, the volume of established CoinDesk 20 assets increased by 22% from Q2 to Q3. However, the trustworthy market volume of these crypto assets increased many times over.
These five new crypto assets are replacing established assets known to crypto investors. Bitcoin sv, a fork of Bitcoin and dai from 2018, the DeFi-Stablecoin (decentralized finance) published by MakerDAO, has both been deleted from CoinDesk 20. All three data protection currencies listed earlier are also listed: zcash, monero, and dash. Of the five, only one, bitcoin sv, saw a decline in dollar volumes on trusted exchanges between Q2 and Q3.
New CoinDesk 20 Assets, 4th Quarter 2020, quarterly volume change
Three of the new assets, ALGO, ATOM, and ADA, represent Web 3 infrastructure developers, projects that are potential competitors to Ethereum.
Kyber in particular grew a staggering percentage due to its listing on three new exchanges that are on our trusted list. Coinbase, in particular, has processed the impressive volume of the KNC token connected to Kyber Network, a decentralized exchange application.
Kyber 2020 Quarterly Volume from Trusted Exchange
Former CoinDesk 20 assets, volume change, 2020 Q3 versus Q2
All three privacy coins removed from CoinDesk 20 grew in volume in the third quarter, but not by multiples of the average volume growth their replacements saw. This does not mean that DeFi stablecoins and data protection currencies are no longer important or interesting. This means that at least for now the verifiable part of the volume in the crypto asset markets has shifted its activity to other assets.
We started CoinDesk 20 in July. A revision in September saw low revenue with an Ethereum-based application token, Orchidee, withdrawn to replace another, basic attention token.
Orchid, which offers a decentralized Virtual Private Network (VPN) service, remains on the list. The volume grows from Q2 to Q3 by 562% compared to the previous quarter.
The CoinDesk 20 methodology is regularly reviewed and revised. If you have any questions or comments about the method, please email them to coindesk dot com.