Genesis Digital, a leading cryptocurrency trading, lending and custody desk, released its Q2 report, where it confirmed what it called the “evolving role” that Ethereum and DeFi have in the industry. The report also confirms that institutional interest in crypto is still growing despite the price drop experienced by the market in the second quarter of 2021.
Genesis Confirms Ethereum and DeFi Market Rise
Genesis, a major cryptocurrency lending and trading desk, has confirmed that emerging currencies such as Ethereum and DeFi tokens have taken a relevant share of the market, according to Q2 2021 Market Overview Report. Genesis saw these currencies draw a substantial portion of the interest from bitcoin, a cryptocurrency traditionally best known for institutional investors. Matt Balenswig, Head of Institutional Lending at Genesis, said:
Bitcoin dominance in terms of market cap fell from 70% at the end of 2020 to less than 45% at the end of Q2 as ether and most of the main decentralized finance tokens more than doubled in price since the start of the year.
According to the Genesis report, bitcoin trading accounts for about 47% of the total trading done on its platform. However, this number marks a sharp drop from the 80% share of bitcoin during the second quarter of 2020. Most of the market share lost by bitcoin went to ethereum, which accounted for 25% of the trading volume over the same period.
What is more interesting, however, is that institutions have also shown demand for DeFi tokens such as Uni, Sushi, Away, and other Ethereum-based DeFi protocols. Furthermore, there was increased interest in so-called “Ethereum killer” tokens such as Solana and Binance tokens, as investors looked for cheaper opportunities to earn yields.
The demand for crypto products continues to grow
Genesis also reported a significant increase in lending activity. The company’s loan originations were up 700% annually and 60% quarter-on-quarter, even with the decline in prices experienced by the market during that period. This quarter is the thirteenth quarter in a row for the company, indicating that the market has made incredible growth.
Genesis CEO Michael Morrow believes that there are still significant problems for institutions trying to adopt the cryptocurrency space, but these will be addressed in time. Moreau emphasized:
Certain barriers to entry for institutional investors still exist, which is why we are seeing such increased demand for a more accessible single access to Genesis for the mature digital asset market.
What do you think about the findings of the Genesis Q2 2021 Market Observation Report? Tell us in the comments section below.
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