Overview
Eddy Lazzarin, a partner at Andreessen Horowitz (a16z), presents five insightful charts capturing the most significant events and market dynamics in the cryptocurrency industry during 2020. The year marked Bitcoin's price surge to all-time highs, drawing mainstream attention, while Ethereum's DeFi explosion attracted users and strained network capacity.
1. Decentralized Exchanges: Trading Volume
Source: Dune Analytics (Includes data from Uniswap, Sushiswap, Curve, Balancer, and others)
Decentralized exchanges (DEXs) saw trading volumes skyrocket in 2020, reaching levels previously seen only on centralized platforms. This growth was fueled by:
- DeFi protocol integrations
- Yield farming incentives
- Decentralized governance models
- New token launches
DEXs became the go-to platform for accessing new DeFi tokens, demonstrating the viability of trustless, non-custodial trading—a core promise of blockchain technology.
2. Bitcoin and Ethereum Transaction Fees
Source: Coin Metrics
- Ethereum fees spiked during DeFi summer, settling at $4–40 per transaction post-surge.
- Bitcoin fees remained stable but climbed gradually, reflecting sustained demand for block space.
Key Debate: High fees signal strong demand but risk excluding smaller users. Solutions like ETH 2.0 and Layer-2 scaling aim to reduce costs.
3. Bitcoin and Ethereum Active Addresses
Source: Glassnode
- Daily active ETH addresses doubled from 200K to 400K.
- Bitcoin addresses grew from 700K to nearly 1M.
Growing activity underscores rising adoption despite high transaction costs.
4. DeFi Market Capitalization
Source: CoinGecko
DeFi assets (excluding stablecoins) accounted for ~2% of the total crypto market cap in 2020. Despite its small size, DeFi drove innovation and community engagement, with projects like:
- Lending protocols
- DEX aggregators
- Yield optimization tools
5. Decentralized Autonomous Organizations (DAOs)
Source: CoinGecko
The top 12 new DAOs in 2020 reached a fully diluted市值 of $14 billion. DAOs represent a novel organizational structure where:
- Community members govern via voting.
- Protocol fees fund operations.
- Transparency is enforced on-chain.
DAOs are not companies—they are community-owned software with global participation.
FAQ Section
Q: Why did DEX trading volumes surge in 2020?
A: DeFi’s composability, yield farming, and new token launches drove demand for trustless trading.
Q: Are high Ethereum fees a long-term issue?
A: Scalability upgrades (e.g., ETH 2.0) aim to reduce fees while maintaining security.
Q: How do DAOs differ from traditional organizations?
A: DAOs operate via smart contracts, with decisions made by token holders—no central leadership.
Key Takeaways
- DeFi and DEXs reshaped crypto trading.
- Scalability remains critical for mass adoption.
- DAOs emerged as a groundbreaking governance model.
2020 set the stage for a more decentralized, community-driven financial ecosystem.