Crypto.com, a leading cryptocurrency exchange, recently surpassed Coinbase in trading volume. This significant shift in the market is attributed to an increase in institutional demand and the launch of the first Ether ETFs in the United States.
The rise of Crypto.com highlights a shift in the cryptocurrency trading landscape and indicates the growing influence of traditional financial institutions.
On August 1, Crypto.com recorded a 24-hour trading volume of $3.16 billion. This figure represents a 23% increase from the previous volume, according to data from Messari. In comparison, Coinbase recorded $2.12 billion in the same period. The substantial difference in volumes reveals Crypto.com’s growing impact on the market.
Factors that drove Crypto.com’s growth
Crypto.com’s growth in trading volume is attributed to several factors. Giuseppe Giuliani, CEO of Crypto.com, for example, highlighted that the growing list of institutional clients played a crucial role. He stated:
“This growth is linked to the acquisition of new clients on the platform, both large institutions and advanced retail merchants, and is being supported by stronger market conditions in 2024.”
Crypto.com has attracted a significant number of new financial institutions, which has contributed to the increase in trading volume. In addition, the exchange has also benefited from the launch of the first spot Ether ETFs in the United States, which took place on July 23.
The impact of spot Ether ETFs on trading volume has been notable. According to Giuliani, “In the week of July 21, during which Ether ETFs came to market, we saw double-digit growth in our platform’s Ether spot and perpetual volume week over week, building on consecutive weeks of strong volume growth.”
This increase in business volume has also generated a growth in interest from companies in the traditional financial sector.
Institutional adoption of cryptocurrencies
Institutional adoption is a crucial factor for the cryptocurrency market, especially for coins like Bitcoin (BTC). Industry analysts indicate that mass adoption could drive Bitcoin’s price to new heights.
According to some predictions, the final price of Bitcoin could exceed US$700,000 if the adoption curve multiplies by four.
Crypto.com’s growth reflects a general increase in institutional interest in cryptocurrencies. Bitcoin’s open interest reached a record $39.46 billion on July 29, suggesting a significant breakout in the market could be imminent.
Giuliani noted that open interest on Crypto.com has increased nearly fourfold since the start of 2024. He attributes this growth primarily to new institutional and crypto-native entrants. “We have seen a strong increase in volume and open interest coming primarily from new clients, especially large TradFi institutions and crypto-natives,” he stated.
Despite the increase in institutional interest and growth in trading volume, Bitcoin’s price is still holding below the $65,000 mark. This suggests that while there is growing demand, the market is still waiting for additional momentum to push Bitcoin’s price to new highs.