Coinbase Report: Ethereum tops Bitcoin in trading volume for second quarter in a row
According to Coinbase’s earnings report for Q3 2021, has once again toppled in terms of trading volume for the second quarter straight.
The “Key Metrics” section of the report showing the company’s trading volume percentages revealed that Ethereum took 22% of the overall trading volume on the platform in Q3, while Bitcoin settled for only 19%. Other crypto assets made up the remaining 59%.
The retail trading volume on Coinbase (NASDAQ:) in Q3 was $93 billion, a 36% decrease from the volume in Q2. This decline correlated with the overall volume decline on both derivatives and spot markets, according to the report. Meanwhile, retail accounted for 28% of the total trading volume.
Coinbase insists that the main reason behind the decline in trading volume is the minimized volatility in the market. The role of volatility in the distribution of funds cannot be underestimated, as retail traders are mostly in pursuit of short-term profits.
Although Bitcoin is currently in second place in terms of trading volume, it still holds first place in terms of assets held on Coinbase. 42% of all the funds on the platform are in Bitcoin, with only 22% in Ethereum. This is largely because most trading pairs are tied to BTC and cannot be traded without it.
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