Crypto.com Overtakes Coinbase in Trading Volume Following the Entry of Institutional Clients
The trading volume of Crypto.com and Coinbase recently surged following the entrance of TradeFi firms and the launch of first-spot Ethereum ETFs.
Crypto.com trading volume increased in comparison to Coinbase following the inclusion of institutional investors and the launch of the first spot Ethereum ETF in the USA. On the other side, Crypto.com is a regulated exchange that reported a 23% rise in daily trading volume.
Messari Report on Crypto Trading Volume
The total transactions hosted on the platform were noticed to be around $3.16 billion as of 1st August. This in turn took a lead in terms of the same metric for Coinbase which recorded around #2.12 billion according to Messari.
Guiseppe Giuliani, the managing director of Crypto.com attributed the rise in trading volume to ever-increasing list of institutional investors.
He further noticed that the growth was a sign of stronger market conditions and improved product offerings. He stated that the growth was driven by the acquisition of new investors on the platform. Big firms and advanced retail investors are notable entries. Additionally, stronger market conditions in 2024 have also resulted in the creation of better market conditions.
Bitcoin Institutional Adoption
Institutional adoption for crypto such as Bitcoin has the potential to pave the way for new ATHs. Analysts claim that the ultimate price of Bitcoin could rise to $700 thousand if the ongoing adoption curve continues to increase by four-folds. Ethereum ETFs launch first time on 23rd July 2024.
Giuliani noticed that spot Ethereum ETFs played a major role in increasing Crypto.com trading volume. As of 21st July, Ethereum ETF debuted with double-digit price momentum for the spot and perpetual volume for Ethereum spot for the week-to-week product.
This momentum was maintained after consecutive weeks of strong volume-based growth. The trading platform printed an uptick in interest for firms in Traditional Finance (TradeFi) as per the analyst.
Bitcoin open interest recorded $39.36 billion on 29th July pointing towards a strengthening possibility of breakout. Meanwhile, open interest on Crypto.com increased by four times since the start of 2024 on account of institutional entries.
The analyst reported a strong spike in trading volume and open interest stemming from new investors hailing from the institutional sector such as TradeFi and crypto-native firms. At the same time, Bitcoin prices stayed within a $65 thousand range and waiting for institutional interest to introduce inflows into the flagship crypto.
Deribit’s Ethereum Price Prediction
Another report published on 01 August has noticed that investors are looking at a key support level for ETH at $2860. This price point was tested at several occasions since 5th July 2024.
Analysts from Deribit opine that ETH prices are looking at possible upside owning to the US Ethereum ETFs. The report indicates that the price point could pave the way for the token to reach $4500.
Analysts have further stated that the Ethereum ETF launch could increase institutional demand and inflows for the product. Ethereum ETFs are considered as regulated products and led to positive market sentiment for substantial inflows.
The inflows reported on 30th July accounted for $33.6 million in net flows for all 9 spot Ethereum ETFs. Nansen data projections on 31st July noticed that $750 million outflows from Ethereum ETFs during 4 out of 5 recorded trading days.
This has led Bitwise to become the leading trading volume contributor for Ethereum ETFs in July. As per Nansen projections, BlackRock now accounts for around 7% of AUM which is raised from 5.59% on 01 August.
The last ATH for ETH was reported on 14th March with the market trading around $3200 as sentiment rotates owing to rising geopolitical strain. The price of ETH did not gain significantly following the ETF launch like Bitcoin. Data projections from L2Beat reported a total value locked (TVL) of 17.8 million Ethereum on the blockchain.
