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Bitcoin is the largest crypto in the industry, but it doesn’t dominate in every way. According to Coinbase Institutional’s latest report for the first half of 2021, the ether’s trading volume from January to June grew faster than BTC’s. This is a testament to how excited investors have become about the second-largest crypto in the market during the first six months of the year.
In fact, Ethereum isn’t just outperforming Bitcoin on the growth of total token volume traded. ETH has performed much better on the stock market than BTC. In the first half of 2021, ETH’s price rose 193.34% while Bitcoin’s rose 23%. Same observation if we take the ATH of both cryptos. Bitcoin grew by 123.51% from its highs while Ethereum grew by 1846%.
Ethereum trading volume up 1.461%. In the report, Coinbase analysts reported that globally, the trading volume of the entire crypto sector in the first half of 2021 has increased at a dizzying pace. Compared to last year’s statistics, this year’s are quite mind-blowing.
Total BTC volume for the period reached $2.1 trillion, up 489% from $356 billion in the same period in 2020. Total ETH volume, meanwhile, reached $1.4 trillion, up 1,461 percent from $92 billion in the first half of 2020. Coinbase revealed in its report.
The bull market set in motion at the beginning of the year is certainly the main reason behind the explosion of transaction volume on the top two cryptos of the market. It is also known that during the same period of the year in 2020, the cryptocurrency market like many other financial markets was hit by the crash due to Covid.
The growth in trading volume had a positive impact on the market capitalization of the market. The cryptocurrency market cap grew by 86% on an annual basis, from $769 billion at the beginning of the year to $1.4 trillion at the end of the first half of the year. If the market’s ATH of 2.4 trillion were factored in, the half-year gain would increase to 212%.
Would Ethereum surpass Bitcoin? This is a question that quite a few crypto subscribers are asking. One thing is clear: the gap between Bitcoin and Ethereum is narrowing. We were at 72%-13% in February after Tesla’s announcement to accept payment in Bitcoin for the purchase of its cars. Today, we are at 48.4%-17.3%. Ethereum is gaining ground while bitcoin’s weight in the sector is regressing.
For Alex Mashinsky, the CEO of Celsius Network, ether could become the leading crypto by 2023. The argument he uses to explain his prediction: ethereum is the king of Yield Farming. In fact, it’s not just Yield Farming that is delighting investors. Ethereum’s network upgrade to PoS is seducing institutional investors. JP Morgan already validates the Ethereum 2.0
Moreover, Goldman Sachs believes in Ethereum and DeFi. The American Mega Bank has released a note making people believe that Ethereum will become the first crypto on the market. In reality, ETH still has a long way to go as bitcoin is getting much more institutional approval. Additionally, BTC plans to make efforts to erase the black spot that tarnishes its image. Indeed, Bitcoin miners want to drastically reduce the energy consumption in the mining networks.