Ethereum Trading Volumes Growth Outpaces Bitcoin for the First Time Ever
- Coinbase reports that Ethereum beat Bitcoin in trading volumes in H1 2020
- Compared to a year ago, Ethereum trading volumes are up by 1,461%
- In the same period, Bitcoin trading volumes increased by 489%
- It is the first time Ethereum has beat Bitcoin in trading volumes
While overall crypto adoption is growing, Ethereum seems to be outpacing everything else in growth, including Bitcoin.
Per data by Coinbase, Ethereum trading volumes stood at $1.4 trillion in half one of 2021. This is an increase of 1,461% compared to a similar period in 2020.
Comparatively, Bitcoin transactions grew by 489% in the same period to stand at $2.1 trillion.
Coinbase has highlighted several factors contributing to Ethereum’s rising transaction volumes and could see it sustain growth going forward.
One of them is its dominance in the smart contracts economy. Most smart contracts utilize the ERC-20 standard, and the number of Dapps is growing exponentially by the day.
However, it is in the DeFi ecosystem that Ethereum’s dominance is most evident. Of the top 100 DeFi platforms in the market today, close to 99% are Ethereum-based. Considering how big of a market DeFi is, it is not surprising that Ethereum is outpacing Bitcoin in transaction volumes.
Besides, unlike Ethereum, Bitcoin’s use cases are pretty much limited to value transfer transactions and as a store-of-value.
There is also growing optimism that Ethereum is likely to get better in its core functionality as a Dapps platform.
This optimism is driven by the transition that it is making from a Proof-of-Work to a Proof-of-Stake blockchain.
The excitement stems from the fact that the transition will solve the scalability problem that is behind the high gas fees at peak usage.
Ethereum’s growing adoption has also seen Ethereum attract a lot of institutional investor interest.
According to Coinbase, a lot of institutional players that use the exchange have taken a huge interest in Ethereum. The exchange has noted that most of them increased their Ethereum portfolios in H1 of 2021.
With the crypto market seemingly hitting the bottom, Ethereum is one of the cryptos that have made a big bounce.
From lows of around $1700 about a week ago, Ethereum is currently trading at $2292.23. In the past 7-days, it has gained by over 22%.