August 7, 2021 11:19 UTC
August 7, 2021 11:19 UTC
Genesis Digital, the number one cryptocurrency business, lending and custody desk, released its second quarter report, confirming the “emerging role” of Ethereum and defi in transactions everywhere. The report also confirmed that despite the market’s toughening in the second quarter of 2021, institutional interest in cryptocurrencies is still rising.
Genesis confirms the rise of Ethereum and Defi markets
According to its market observation report for the second quarter of 2021, Genesis, the large-scale cryptocurrency disposal and commerce department, has confirmed that emerging currencies such as Ethereum and defi tokens have occupied relevant parts of the market. Genesis sees that these currencies take up a large part of the interest from Bitcoin, which has historically been the cryptocurrency of choice for institutional investors. In this regard, Matt Ballensweig, head of institutional disposal at Genesis, said:
“Bitcoin’s dominance in market capitalization has fallen from more than 70% of the top in 2020 to below 45% of the top in the second quarter, because the value of Ethereum and most of the most localized financial tokens has doubled since the beginning of the year .”
According to a report by Genesis, Bitcoin transactions accounted for 47% of all transactions completed on its platform. However, this range marks a significant drop in Bitcoin’s 80% share throughout the second quarter of 2020. Most of the lost market share of Bitcoin was transferred to Ethereum, which accounted for 25% of the market share during the same period.
However, what is striking is that institutions have collectively shown a demand for defi tokens such as uni, sushi, aave, and different Ethereum-based defi protocols. In addition, as investors seek cheaper opportunities to earn income, interest in so-called “ethereum killer” tokens such as Solana and Binance has increased.
Growing demand for encryption products
The disposal activities reported by Genesis also increased significantly. The company’s loan origination increased by 700% year-on-year and 60% month-on-month. Even if the cost slows down, the market has become firm across the entire amount. This quarter is the company’s 13th consecutive quarter to achieve growth, which indicates that the market has continued to achieve unimaginable development.
Genesis CEO Michael Moro believes that there are still important issues for companies trying to embrace the cryptocurrency space, but sometimes these issues go well. The Filipino emphasized:
“Institutional investors still have some barriers to entry, which may be why we are seeing such an increase in demand for the large number of accessible single-purpose access that Genesis provides for the mature digital asset market.”