This year on Coinbase, the growth in trading volume for ETH has outpaced that for BTC and other cryptocurrencies. The growth is due to the activity of institutional investors and interest in DeFi.
According to the report of the cryptocurrency exchange Coinbase, this year the volume of ETH trading on it has grown 15 times and reached $ 1.4 trillion. At the same time, for the same period last year, the trading volume reached only $ 92 billion.In terms of the growth rate of this indicator in the first six months of 2021, ETH surpassed all other cryptocurrencies, including BTC. Bitcoin trading volume on the site increased by only 489%, although it is still twice that of ether.
ETH has also surged in value this year. According to a report compiled by Coinbase researcher Brian Foster, “The second most valuable crypto asset has risen in value by 895% in twelve months and by 210% in six months.” According to Coinbase, the main factor behind the growth in ETH trading volume lies in the popularity of Decentralized Finance (DeFi).
“The rise in Ethereum’s use of DeFi protocols confirms the value of the network as a global financial tool and platform for developers.”
The surge in interest in ETH is due to the fact that institutional investors are increasingly paying attention to DeFi. Coinbase said interest in investing in DeFi protocols from large clients peaked in the first half of 2021.
“For much of 2020, retail investors have been driving the DeFi trend. But in the first half of 2021, we saw a surge in interest in DeFi among our institutional clients. ”
Exchange researchers also note that “traditional hedge funds and global investment banks” have shown a lot of interest in the sector this year. Recently, Ethereum co-founder Vitalik Buterin said he has high hopes for social use of the network that goes far beyond the quick financial gain from DeFi.
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