In a groundbreaking shift in the cryptocurrency market, Crypto.com has surpassed Coinbase in trading volume, indicating strong institutional demand and changing market dynamics.
A Jump In Trading Volume
On August 1st, Crypto.com saw a staggering 23% increase in its daily trading volume, reaching $3.16 billion and surpassing Coinbase’s $2.12 billion. This rapid growth is mainly due to new institutional clients entering the platform and the launch of the first spot ether ETFs in the US.
What Drove Growth?
There were three main drivers behind this significant uptick in trading activity:
- Institutional Clients: A growing number of institutional customers using Crypto.com has been one major reason for increased trading volumes.
- Better Market Conditions: Increased activity from traders as a result of more favorable market conditions during Q1/Q2 2024 also contributed.
- New Products: The introduction of first-ever U.S.-based Ether ETFs was another factor that helped boost trade volumes on exchanges like Crypto.com.
Giuseppe Giuliani, Managing Director at Crypto.com, said that bringing onboard advanced retail traders as well as large institutions has played an important role here too.
The Role Played By Ether ETFs
Spot ether ETFs have proven revolutionary for Crypto.com exchange platform since they were launched on July 23rd, which led to substantial increases in daily volumes traded through exchange platforms such as Cryptocurrency Exchange Platform (CEX) or decentralized exchanges (DEXs).
During launch week alone, according to Giuliani, there was double-digit week-on-week growth seen across all types, including ETH perpetual futures contracts traded on their site where CEX users can buy/sell tokens directly without needing any intermediary service provider involved.
Taking Into Consideration Institutional Adoption
For long-term sustainability within crypto markets, continual adoption by institutions will be necessary, he said, adding that open interest levels at Crypto.com have surged since January this year due to inflow from traditional finance as well as crypto-native entities.
Bitcoin and Expectations in the Market
Bitcoin price still sits below $65,000 despite a spike in trading volume and open interest. According to analysts, however, for such massive inflow into Bitcoin to take place and consequently push its price higher than its previous all-time highs, it requires persistent institutional interest.
Conclusion
Crypto.com overtaking Coinbase in terms of trading volume is another milestone achieved within this cryptocurrency space, indicating that more institutions are getting involved. As we continue witnessing an evolving marketplace driven by new institutional clients, coupled with Ether ETFs as novel products offered, will be paramount.
Are you ready to enter into institutional crypto trading? It’s important to stay abreast of changing trends so you can make informed decisions when investing your money.