The Quarterly Review 2021 by CoinDesk Research looks at driving trends in crypto markets, focusing on Bitcoin, Ethereum, stablecoins, NFTs, DeFi and more.
While the industry growth of Q4 2020 was driven largely by institutional participation in the asset markets and infrastructure, Q1 2021 told a more nuanced story. Activity from institutional investors seems to be slowing down, but they are still key, and several of the quarter’s milestones point to that continuing for the next few months at least. However, certain metrics show that interest from retail investors and traders is picking up, bringing in new flows and investment patterns.
Let’s look at some of the details:
First, bitcoin’s market cap crossed $1 trillion in Q1. This is significant in that many institutional investors will not even consider an asset group until it is of sufficient size to merit the attention, and $1 trillion is a strong psychological level. So, institutional investors are more likely to dedicate resources to investigating and learning