In the world of cryptocurrencies, Bitcoin has always been considered the king, despite being the oldest in a world where new technology is developed day by day.
Now, doubts arise about the reign of BTC, as Ethereum, the second largest cryptocurrency in the world, has highlighted its potential after surpassing Bitcoin in the number of tokens traded on Coinbase, one of the largest exchanges.
Based on Coinbase’s second quarter earnings results, Ethereum accounted for 26 percent of the number of trades made on the exchange, up 21 percent from the prior quarter. On the other hand, Bitcoin’s trading volume fell from 39 percent to 24 percent. Cryptocurrency trading volume for the remaining digital assets increased by 10 to 50 percent from the first quarter of 2021.
Ethereum accounted for 26% of the trades carried out on the exchange, with an increase of 21% in the previous quarter; and Bitcoin trading fell from 39 percent to 24 percent.
Coinbase is the first exchange to go public, and therefore must present its financial statements publicly. Thanks to this, crypto investors can see how the cryptocurrency landscape is from the point of view of an exchange. Overall, Coinbase’s trading volume for the quarter beat expectations, reaching $ 462 billion. Which means that there are still a lot of transactions, despite the correction suffered by cryptocurrencies of more than 50 percent for the most part at the beginning of the second quarter. This gives even more hope to the investing public who are relying on cryptocurrencies.
The exchange notes that Ethereum’s growth is due to activity on the network. On August 5, the ETH network received an update called London Hard Fork, in Spanish Hard Fork of London, or by its technical name EIP-1559. In this regard, Coinbase highlighted the interest in decentralized finance (defi) as the main motivating factor for the increase in Ether trading volume. During the quarter, non-fungible tokens (NFTs) tied to the Ethereum blockchain also gained prominence, generating interest in the asset. Thus, the price of ETH so far this month has risen 28 percent, surpassing the barrier of $ 3,000 per unit, and growing 337 percent so far this year.
Coinbase, regarding investor interest, said: “We are seeing cryptocurrencies mature rapidly from their initial bitcoin trading use case to trading thousands of new assets, and the adoption of new use cases such as decentralized finance (DeFi), non-fungible tokens (NFT), smart contracts, decentralized autonomous organizations (DAO), and more “
With the interest in the growth of the second largest cryptocurrency, Coinbase also revealed its stake function in Ethereum which contributed to the high trading volume.
If you compare the result of the second quarter of 2021 with respect to the same quarter of the previous year, you can see how the growth of ETH has far exceeded that of BTC. In one year, Bitcoin’s traded volume on Coinbase increased by roughly 693 percent, rising from $ 16 billion to $ 111 billion. On the other hand, the ETH traded volume grew from 4.2 billion to 120 billion, registering a rise of 2,857 percent in the same period.
This could be for two reasons; firstly by the growth of decentralized finance platforms since 2020, which, for the most part, are built on the Ethereum network, and, secondly, by the great boom in non-fungible tokens (NFTs) this year. For example, in Axie Infinity, the currently star game of the NFT world, ETH is needed to trade the axies, this makes players have to buy ETH first to enter the game, and thus increases the demand.