The Evolution of the Digital Asset Market In 2017

As more marketers continue to embrace digital asset management, the digital asset market is expected to continue to grow over the next couple of years. In fact, a report by Grand View Research, Inc. indicates that the digital asset management market will reach USD 5.60 billion by 2025. The market is also anticipated to grow at a CAGR exceeding 18.23% over the forecast period. The trading volume of digital assets is more volatile. Bitcoin and Ether trading volumes seem to be relatively consistent, but the situation with other digital currencies, such as Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH) is quite different. Bitcoin Cash demonstrates extreme switching from one point to another, while Litecoin exceeds the market cap share. Ripple trading volumes have taken a significant shift, trading below the market cap share. In the end, these effects seem to cancel out.
The market is expected to record a high-growth rate due to the increased preference of institutions for unique media content and the promotion of products and brands. Also, the growing demand to have digital marketing applications on the market is expected to contribute to the growth of the digital asset market by a significant margin. Other factors, such as the use of SaaS-based solutions and the increased demand for integrated solutions, are also expected to increase the growth rate of the digital asset market.

This guide presents a complete overview of the recent developments of the digital asset market in 2017.

The principal subjects of the study are...
  • Nature of Trade Not Affected by Changes in Price
  • The Rise of Altcoin Trading and Competition in the Asian Market
  • Japan Remains the Earliest Bitcoin Adopter, While Korea is Still in the Trial Stage

Let’s get started.

Nature of Trade Not Affected by Changes in Price

Recently, the market witnessed an unmatched increase in prices, but the trading volumes in digital assets didn’t change much.
Throughout 2017, the Bitcoin trading volume increased slightly from approximately 40,000 Bitcoins a day at the beginning of the year to about 60,000 Bitcoins towards the end of the year. Around July 2017, Ethereum trading recorded a high of 500,000 Ether traded in a day, but by the end of the year, it dropped to 200,000 Ether a day. Ripple followed the same trend, seeing huge spikes in volume in April, with a rise of about 400 percent, and an additional increase of 1,000 percent toward the end of 2017. Likewise, the Litecoin trading volume increased around March, with two further major spikes occurring in September and December.
From the findings above, it is clear that traders determine their trading behavior according to the number of digital assets traded within a specific period and not based on the value of fiat currencies.

The Rise of Altcoin Trading and Competition in the Asian Market

The biggest trends in 2017 were the rise of Altcoin trading and the reduced popularity of cryptocurrencies in East Asia. In the first quarter of 2017, East Asia accounted for 75 percent of Bitcoin across the globe. Altcoin popularity increased in most parts of the world, and in North America, Bitcoin trading was overtaken by ETH (an altcoin). Bitcoin’s cousin, Bitcoin Cash, seemed to gain popularity in Western Europe but not in East Asia.
By June 2017, the market size of East Asia and North America was almost the same while Europe was still far behind. As a result, East Asia dominated the market with less than 50 percent of the value. From that point, the European market grew further, surpassing North America. Despite the growth of European market, East Asia was still dominating by a smaller margin by the end of 2017.
The following rise in the European market and the relative fall of North America and East Asia came as a result of the strict regulations imposed by China, North America, and Korea.

Japan Remains the Earliest Bitcoin Adopter, While Korea is Still in the Trial Stage

Japan remains the earliest adopter of Bitcoin, while Korea is still experimenting. Americans love Ripple.
This statement may be considered a traditional tale when it comes to digital asset markets, but it can be tested. For verification purpuses, let’s look at the trading volumes of the most popular and most-traded digital assets in the market with respect to conventional currencies.
The American dollar is the most common currency used for trading in the digital asset market. It is used by many exchanges as a reference currency leading to a higher BTC/USD trading volume. Ether comes second, while the rest of the digital assets play only a minor role. Ripple is not as popular as BTC and ETH in America because most Americans prefer to use Bitcoin.
In Japan, Bitcoin dominates digital market as Japanese stayed true to the digital currency, considering Bitcoin’s founder from Japan Satoshi Nakamoto.
On the other hand, in Korea, Bitcoin wasn’t the most-traded digital asset throught of 2017. In conclusion, Koreans are the most diversified and curious traders in the world. In fact, Ripple was the most traded digital currency in 2017.

Conclusion

There’s no doubt that 2017 was a great year for digital assets, with huge growth being recorded in the market cap, trading volume, and number of digital trading assets. The increase in prices caused a buzz across the globe, with new players entering the market. Based on the above information, it is clear that Bitcoin’s dominance continues to break records while the margin decreases. This can be seen in South Korea, where altcoin trading volumes have surpassed Bitcoin's. Also, Asian dominance in the market continues to fall while North America keeps growing faster than other global markets. In a nutshell, the digital asset market is volatile, and we can only expect to witness significant changes as the demand grows.

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