Ethereum overcomes Bitcoin in terms of trading volume on Coinbase
Coinbase Inc. released its third quarter 2021 earnings report, in which it disclosed the transaction volumes of various transaction pairs, including Bitcoin and Ethereum. According to the report, Ethereum once again overtook Bitcoin’s first place in trading volume for the second quarter straight.
In the “Key Metrics” section of the report, the company displays transaction volume percentages. In the third quarter of 2021, Ethereum took 22% of the overall trading volume on the platform, while Bitcoin settles with 19% only.
Another 59% of the overall trading volume was absorbed by other crypto assets.
Coinbase’s quarterly performance
In Q3, retail trading volume on Coinbase was $93 billion, which is a 36% decrease compared to the volume in Q2. According to the report, the decline correlates with the overall decline in volumes in derivative and spot markets.
Retail made up 28% of the total trading volume. As Coinbase reports, the main reason behind the decline in trading volume is a drop in volatility on the market. Since retail traders primarily try to make short-term profits, volatility plays a key role in the distribution of their funds.
Asset allocation on the platform
While Bitcoin remains in second place by trading volume, it still holds first place by assets held on the platform with 42% of all funds remaining in Bitcoin and only 22% in Ethereum. But the reason is that most of the trading pairs are linked to BTC and cannot be traded without it.
