ETH trading volumes are rising faster than bitcoin volumes

Ethereum • August 4, 2020, 5:25AM EDT
UPDATED: August 4, 2020, 5:30AM EDT
The Block

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.

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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.

To read the full report and more such data-driven stories, subscribe to The Block Research.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

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