According to data from Chainalysis, the total USD volume of the top 25 cryptocurrencies increased by roughly 100% in 2019, from just under $50 billion per month to just under $100 billion per month. Simultaneously, transaction frequency increased by roughly 6 million transfers per month.
Previously in 2018, USD volume and transaction frequency dropped severely, coinciding with the bear market of 2018. This drop actually continued into the first 2-3 months of 2019, after which point cryptocurrency prices, USD volume, and transaction frequency began to rally.
Cryptocurrency prices topped out in June and July, with Bitcoin (BTC) hitting $13,800, simultaneous with a peak in USD volume and transaction frequency. Since then USD volume and transaction frequency has steadily declined.
That being said, USD volume and transaction frequency has not crashed in the latter half of 2019 like it did during the bear market of 2018. Rather, it has been a much more stable and slow drop, and in general the crypto market continues to be far healthier than it was during the bear market of 2018.
As discussed in a previous article on Crypto.IQ, the existence of Bitcoin futures has introduced constant short selling pressure into the market, making it so bubbles do not get too out of control before popping.
Essentially, the boom and bust cycle of the crypto market is diminished by the existence of Bitcoin futures, and this data from Chainalysis seems to prove this. Basically, even though there was a massive rally in 2019, it stopped before becoming a hyperinflated bubble, and even after the rally ended the crypto market remains healthy since the crash was not too severe.
Perhaps this sets a precedent for the future of the crypto market, where the boom and bust bubble cycle will not be that extreme anymore.