Certainly, Bitcoin is the largest crypto in the sector, but it does not dominate on all points. According to the latest Coinbase Institutional report for the first half of 2021, the trading volume of ether from January to June, grew faster than that of BTC. This is a testament to investor enthusiasm for the market’s second-largest crypto in the first six months of the year.
In reality, Ethereum does not only outperform Bitcoin in growing the total volume of tokens traded. ETH performed much better on the stock market than BTC. In the first half of 2021, the price of ETH rose 193.34% while that of Bitcoin rose 23%. Even if we take the ATH of the two cryptos. Bitcoin is up 123.51% from its highest levels while Ethereum is up 1846%.
Ethereum trading volume up 1.461%
In the report, Coinbase analysts reported that globally, the trading volume of the entire crypto industry in the first half of 2021 has grown at a breakneck pace. Compared to last year’s statistics, this year’s statistics are quite mind-blowing.
Total BTC volume for the period reached $ 2.1 trillion, an increase of 489% from $ 356 billion over the same period in 2020. Total ETH volume, meanwhile, reached 1 . $ 4 trillion, up 1,461% from $ 92 billion in the first half of 2020. Coinbase revealed in its report.
The bull market that started at the start of the year is certainly the main reason behind the explosion in the volume of transactions on the first two cryptos in the market. We also know that during this same period of the year in 2020, the cryptocurrency market like many other financial markets were hit by the crash due to the Covid.
The growth in the volume of transactions has had a positive impact on the market capitalization of the market. The cryptocurrency market cap grew 86% year-on-year, from $ 769 billion at the start of the year to $ 1.4 trillion at the end of the first half. If we factor in the market ATH of 2.4 trillion, the half-year gain would rise to 212%.
Could Ethereum Outperform Bitcoin?
This is a question that many crypto subscribers ask themselves. One thing is clear: the gap between Bitcoin and Ethereum is narrowing. It was 72% -13% in February after Tesla announced it would accept payment in bitcoin for the purchase of its cars. Today, we are at 48.4% -17.3%. Ethereum is gaining ground as bitcoin’s weight in the industry recedes.
For Alex Mashinsky, CEO of Celsius Network, ether could become the number one crypto by 2023. The latter’s argument to explain his prediction: Ethereum is the king of Yield Farming. In fact, it’s not just Yield Farming that appeals to investors. The update of the network from Ethereum to PoS appeals to institutions. JP Morgan already validates Ethereum 2.0
Another major US bank appears to be in love with Ethereum as well. Goldman Sachs believes in Ethereum and DeFi. The US Mega Bank has released a note believing that Ethereum will become the number one crypto on the market. In fact, there is still a long way to go for ETH as bitcoin receives much more institutional approval.
In addition, the BTC intends to make efforts to erase the black spot that tarnishes its image. Indeed, Bitcoin miners want to drastically reduce energy consumption in mining networks.