The volume of Ether greater than that of Bitcoin on Coinbase
According to Coinbase’s second quarter report, Bitcoin remains the most important cryptocurrency on the exchange platform: it represents 47% of the funds stored there. But we still note a sharp decline compared to the first quarter of 2021, where BTC represented 62% of assets:
For Ether, it is the opposite: the native cryptocurrency of Ethereum goes from 14 to 24%. If we look at the trading volume, ETH also exceeds BTC for the first time in the history of the exchange.
Of the 462 billion dollars of transactions carried out on the Coinbase platform, Ether represents 26%, and Bitcoin 24%. The other crypto assets represent the remaining 50%:
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The NFTs and DeFi behind this breakthrough
Coinbase explains this breakthrough in Ether trading volume by several factors. On the one hand, the two most dynamic blockchain sectors at the moment, i.e. decentralized finance (DeFi) and non-fungible tokens (NFT), are largely based on Ethereum. In both of these areas, ETH is used to settle transactions, which in turn boosts trading on Coinbase.
The other reason is ETH’s staking services, which were unlocked by Coinbase in the second quarter of 2021. Inseparable from Ethereum’s move to Proof-of-Stake, they have apparently encountered some success on the exchange platform. As a reminder, at present 6.6 million ETH have been deposited on the Ethereum 2.0 deposit contract.
👉 More info on the switch from Ethereum to Proof-of-Stake
Ethereum is doing well
If in terms of capitalization and price, ETH of course does not really compete with BTC, other indicators show the dynamism of the blockchain. A recent IntoTheBlock report explained that the fees and number of transactions on the Ethereum network greatly exceed those of Bitcoin.
Since 2019, ETH holders have also outnumbered BTC holders, and the gap has tended to widen. If DeFi and NFTs continue to generate the same enthusiasm, Ethereum should therefore continue to perform well.
👉 Discover our interview with Vitalik Buterin – “It’s time for Ethereum to go beyond finance applications”
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About the author: Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.