March 28, 2024

CEX.IO company blog | Pandemic and cryptocurrencies: over the past six months, the number of users on the exchange has grown significantly

ExchangeCEX. Io, which was included in the TOP 10 crypto exchanges according to the CryptoCompare rating in July, summed up the results of the first half of 2020of the year.Today, in the first part of the report, we will talk about how users responded to the pandemic, which seriously shook the global economy, and how active traders were in the first six months.

According to the analytical department of CEX.IO, March 12, 2020, the number of unique users on the platform has reached an annual maximum. There was a sharp drop in the bitcoin rate from $ 8,000 to $ 5,000 after the stock market crash, and a day earlier the WHO announced that the COVID-19 outbreak had become a pandemic. The ensuing economic crisis led to a significant increase in interest in cryptocurrencies.

From February to May, the number of new users on CEX.IO grew continuously, and in May it was 1.5 times higher than the same figure in January. Overall, monthly registrations increased by 80% from January to June. There was also a steady increase in average daily turnover, while throughout 2019 its volumes remained at approximately the same level.

CEX.IO company blog | Pandemic and cryptocurrencies: over the past six months, the number of users on the exchange has grown significantly

Growth in the number of registrations in% (relative to January 2020)

We are seeing a steady increase in trust incryptocurrencies. On the one hand, more and more companies are starting to accept them as a means of payment. On the other hand, people have begun to use digital currencies more often for personal purposes, such as storing savings or making payments.

The main driver of these trends was publicationsin traditional media, the Davos summit, where the cryptocurrency market was widely discussed, as well as the adoption of the Fifth Directive, which became a protection for investors. The crypto market has felt the impact of the global crisis, but to a lesser extent than traditional financial markets. Now, in a time of economic turmoil, digital currencies may represent an additional opportunity to diversify investments.

Cryptocurrencies attract investors asalternative tool. The latest market data shows a fairly high yield given that volatility has dropped significantly. Very low interest rates and, as a result, low returns on traditional instruments such as government bonds, index funds, etc., also force investors to look for alternative options for investing their money.

Read the second part of the report on Wednesday, August 26th.