2021-08-11 19:14:50

Coinbase: In Q2 2021, Ethereum Passed Bitcoin in Trading Volume

Neither the author, Kai Morris, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Coinbase has released its Q2 2021 earnings report. The document reveals a number of important milestones for the exchange, such as having its highest monthly transacting users and its highest net revenue. Although, perhaps the most fascinating revelation is Ethereum’s trading volume surpassing that of Bitcoin on the platform—for the first time ever.

Coinbase: Ethereum Sees More Trading Volume than Bitcoin

Ethereum’s trading volume increased from 21% in Q1 to 26% in Q2. Whereas Bitcoin’s volume decreased from 39% to 24%. This put ETH two points higher than BTC in Q2. 

This is the first time Ethereum has overtaken Bitcoin on the platform, possibly marking a shift in perspectives within the crypto community. Coinbase’s shareholder letter suggests this is “driven by growth in the DeFi and NFT ecosystems (where Ethereum is an important underlying blockchain), and increased demand driven by our ETH2 staking product.” 

ETH’s trading volume has increased by 73% in the space of a year, as in Q2 2020 it only had 15% of the share. Some see this as a sign of the “flippening”, adding to the narrative that Ethereum may one-day reign supreme in the crypto landscape. 

The report suggests Bitcoin’s reduction in trading volume is derived from the exchange adding more altcoins to its platform, enticing people to diversify. This is very different from how Coinbase used to operate a couple of years ago, only listing the highest performing assets. In fact, a total of 22 assets were added to Coinbase in Q2, the highest number in the exchange’s history.