Trading volumes of ether (ETH) — both spot and futures — are rising faster than bitcoin (BTC) volumes, according to The Block Research.
It means traders are trading ETH relatively more compared to BTC. One of the main possible reasons for the shift is the recent decentralized finance (DeFi) boom.
The Block’s Larry Cermak looked at the ETH/BTC spot volume ratio from exchanges with legitimate volume and found that the ratio has grown from about 16% in September 2019 to about 50% now.
Source: CryptoCompare, The Block Research
As for futures trading volumes, the ETH/BTC ratio has grown from about 8% in September 2019 to about 29% now. Overall, rising ETH trading volumes show that there could be further room for ETH price to grow, according to Cermak.
While there is increasing interest in ETH, its market capitalization is still about five times smaller than bitcoin’s, and ETH spot volumes are twice lower, and futures volumes are three times smaller than bitcoin volumes.