Coinshares, a digital asset management company, has unveiled the first release of its semi-annual cryptocurrency market report, excerpted from the Decrypt portal. Analysts evaluated trends from January to June 2019 and noted several significant differences between the current uptrend and the 2017 bull market.
“The four factors that were present at the bullish rise of 2017 are not being traced now: widespread media attention, an increase in the number of searches for the keyword“ bitcoin ”on Google, an increase in the number of tweets about bitcoin and the rally altcoins,” write Coinshares.
At the same time, analysts are paying attention to the long-awaited arrival of “institutional money.” In particular, they mention the investment company Fidelity, which announced its intention to launch an institutional-level custodian service for storing bitcoin. In addition, major players such as Microsoft, Starbucks, and the Intercontinental Exchange began to show interest in the cryptocurrency industry, all of which are participating in the creation of the Bakkt platform.
Facebook deserves special attention, having announced the development of its own cryptocurrency project Libra.
“Although Libra is centralized, has limited access, is based on trust, is not uncensored or limited in issue, and, according to some opinions, is not a cryptocurrency at all (although this term is not clearly defined), it can really be useful for those who do not have access to banking services – services that we in the West take for granted, such as online shopping, ”the document says.
At the same time, the authors draw attention to certain risks of the current institutional rally. A significant role in it continues to play the unregulated stablecoin Tether. Well-known banks and pension funds, which are usually classified as institutional investors, are unlikely to use Tether to buy bitcoin.
In their report, analysts also mentioned the second and third largest cryptocurrencies by capitalization. According to them, the “internal contradictions” continue to undermine the effectiveness of the Ethereum developer community. Coinshares, however, hopes that they will succeed in realizing the plan to launch Ethereum 2.0.
The authors call XRP “the worst cryptocurrency in the first half of 2019”, whose six percent growth pales against an 188 percent recovery in bitcoin and a 281 percent rise in Litecoin. Even the positive comments of the head of the IMF, Christine Lagarde and other influential figures regarding the value of cryptocurrency as a means of payment, are not able to correct the situation.
“It’s unclear whether these views apply to the XRP digital asset or whether they relate to Ripple, the RippleNet suite of products, and perhaps all of the above,” Coinshares writes.