DogeCoin trading on Binance briefly surpassed BTC and ETH volumes in May, while Ethereum volume surpassed Bitcoin on Coinbase: report
Nate Maddrey and the Coin codes The research team found that the trading volume of Ethereum (ETH) caught up with the volume of Bitcoin (BTC) last month Binance, the world’s largest crypto exchange.
Although Bitcoin was led by a significantly large margin in early 2021, Ethereum volume took a huge leap forward in the last month, the Coin Metrics team confirmed in its latest State of the Network report.
The past month has been an “outlier” in many ways, with “meme coins” like DogeCoin (DOGE) dominating the headlines and a major crash that “crashed the market,” the report added, pointing out suggest that it may still be “too early” to say whether these trends are permanent or whether they were just a flash in the pan. “
Coin Metrics also mentioned that the crypto trade volume data provides important insights into what has actually happened in the digital asset markets over the past few months.
As noted in Coin Metrics’ report, small cap coins have risen “across the board” this year, with altcoin trading volume (“altcoin” meaning all non-BTC or non-ETH cryptos) on Binance strong in January rose and peaked on May 10, 2021 – that was just before the big market crash.
Binance supports numerous altcoin pairs, so it is “not surprising” that Binance’s altcoin volume is “overtaking BTC and ETH,” the report said, adding that the ratio of altcoin volume to BTC “is a noticeable leap behind.” above, considering that it was almost balanced ”. start the year. “
The report also revealed that much of the surge in Binance’s altcoins was due to Dogecoin. The DOGE trading volume on Binance briefly exceeded the BTC and ETH volumes in May, “although it has since declined”. However, there has been a surge in other altcoins such as Binance Coin (BNB), Ripple (XRP), Cardano (ADA), and Polygon (MATIC).
As confirmed by the Coin Metrics team, ETH trading volume (overall) on Binance “surpassed BTC volume in May, although it was relatively tight: about $ 191 billion for ETH compared to $ 188 billion for BTC . DOGE came in third with about $ 116 billion. ”Other exchanges“ showed similar trends over the past month, ”the report said. ETH trading volume “skyrocketed in May on Coinbase (counting only USD and stablecoin pairs), with a sharp increase on May 19th,” the report revealed.
As noted by Coin Metrics:
“The ETH volume exceeded the BTC volume on Coinbase by a larger margin than on Binance. Coinbase didn’t offer Dogecoin trading in May (although they launched it in early June) so there wasn’t a DOGE rush similar to Binance’s. But it had a relatively high volume for some other altcoins, led by MATIC, ADA and Ethereum Classic (ETC). “
The report also mentions:
“In continuation of the trend, the ETH volume has displaced BTC to FTX, albeit not by much. But in comparison, the top altcoins at FTX made up a smaller percentage of the total volume than at Binance and Coinbase.
The report further stated that the ETH volume also “exceeded the BTC volume” Huobi“And” Similar to Binance, the DOGE volume on Huobi increased and took the spot as the third most traded currency by volume. “
Although Ethereum has managed to overtake Bitcoin volume on most major trading platforms, BTC is still leading “before” Chicago Mercantile Exchange (CME), a preferred destination for institutional investors. “
CME didn’t launch ETH futures until February 2021, but they have “gained momentum since then,” the report noted, adding that retail investors trading on exchanges such as Binance and Coinbase “added ETH for the last month preferred ”. It also appears that institutional investors continue to favor BTC, the report added.
The report continued:
‘“The markets moved mostly sideways over the past week. Bitcoin and Ethereum usage both stayed relatively flat, with daily active addresses dropping 2.5% and Ethereum daily transaction fees dropping over 35% week-to-week as gas prices continued to fall. And transaction fees for Bitcoin followed a similar pattern, decreasing by 40.5%.
The report added:
“Bitcoin’s level of difficulty was revised down by around 16% at the end of May. The Bitcoin difficulty is adjusted every two weeks in order to maintain a target block time of an average of ten minutes. A higher level of difficulty requires a higher aggregated hash rate to keep the block time at ten minutes, while a decrease in the level of difficulty signals that the hash rate has decreased. “
The report also revealed that the Bitcoin hash rate fell in mid-May 2021 after the BTC price crash and reports that certain Chinese crypto mining operations went offline. While a 16% decrease is a significant difficulty adjustment, it followed “a 22% increase in early May,” the report noted, adding that the difficulty level “is still above its early May level, suggesting that the decrease in hash rate was probably less ”. more serious than initially feared. “
The report also found:
“Tezos’ daily active addresses (30-day average) have increased since March after the Tezos-based NFT marketplace Hic et Nunc gained momentum. Tezos’ relatively low transaction fees make it economical to sell NFTs at low prices compared to Ethereum, which has led to an increase in artists and collectors. “