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What your peers are buying and selling in a vicious bear market

Amid the gloom, some rays of optimism.
December 20, 2018
Vicious Bear Market

The past month has seen one of the worst sell-offs in digital currencies for three years, with a corresponding collapse in prices. At the time of writing (10/12/2018), Ethereum had crashed to 6% of its peak value, Bitcoin languished at 18% and even XRP stood much diminished at 32%. Yet the reaction of Uphold members to the incipient bear market over the past four weeks may be surprising. Uphold’s Chief Data Officer, Rafael Veloso, picks out some of the trading highlights.

Trading on Uphold

% USD value (Nov 11 - Dec 10, 2018)

Trading on Uphold graph

Source: Uphold

  • Despite the grim market, ‘Buy’ orders outweighed ‘Sells’ by 26% in US Dollar terms, with many Uphold customers using the fall in prices to increase their positions substantially.
  • Bitcoin was the most purchased asset - as one might expect given its dominant Market Cap - but only by a tiny margin over XRP. By contrast, BTC was by far the most heavily sold asset, accounting for 73% of all disposals during the month. BTC ‘Sell’ orders exceeded ‘Buys’ by more than a third.
  • In terms of net inflows, the big story was XRP. Even with a market cap only 20% that of BTC, XRP emerged as the second most heavily bought asset on Uphold over the four-week period, coming within 98% of the US Dollar value of all Bitcoin purchased.
  • Steady growth in XRP holdings continued and most holders of XRP held their nerve. XRP buys ran at almost six times the value of XRP sales in the month.

Growing popularity of XRP at Uphold

Member holdings

Growing popularity of XRP at Uphold graph

Source: Uphold

  • Dash buyers showed the highest levels of conviction in their chosen asset, recording an average purchase value almost twice that of the mean for all digital currencies on Uphold.

Dash buyers show greatest conviction

Average transaction values (Nov 11 - Dec 10, 2018)

Dash buyers show greatest conviction graph

‘The past month underlines the continuing rise of interest in XRP,’ explained Veloso. ‘When first listed on Uphold earlier this year, XRP accounted for less than 10% of platform purchases each month. Over the past month, that figure has risen to 43%. Many buyers believe - and Tweet - that XRP has a well-developed use case and is enjoying higher levels of institutional adoption than other digital currencies. Ripple’s xRapid payment technology continues to be picked up by big banks, with XRP providing a liquidity bridge.’

None of the information you read in Uphold Insights should be taken as investment advice, nor does Uphold Inc., its subsidiaries, partners and directors (“Uphold”) endorse any currency, project or product that may be mentioned in or linked to this newsletter. Please do your own due diligence before taking any action related to content within this newsletter. Also note that buying and trading cryptocurrencies should be considered a high-risk activity which could lead to the loss of your entire capital. Uphold takes no responsibility should you lose money trading or investing in cryptocurrencies.