Genesis Digital, a leading cryptocurrency trading, lending and custody service desk, released its second quarterly report confirming the so-called “emerging roles” of Ethereum and Defi in the industry. The report also confirmed that although the market experienced a price drop in the second quarter of 2021, institutional interest in cryptocurrencies is still rising.
Genesis Confirms the Rise of the Ethereum and Defi Markets
According to its market watch report for the second quarter of 2021, Genesis has confirmed that emerging currencies like Ethereum and Defi-Token have occupied relevant parts of the market. Genesis believes these currencies make up a large part of the interest in Bitcoin, which has traditionally been the cryptocurrency of choice for institutional investors. In response, Matt Ballensweig, director of Genesis Institutional Loans, said:
Bitcoin’s dominance in terms of market cap declined from over 70% at the end of 2020 to under 45% at the end of Q2, as Ether and most of the main decentralized finance tokens more than doubled in price from the beginning of the year.
According to a report by Genesis, Bitcoin transactions accounted for almost 47% of the total transaction volume on its platform. However, that number marks a sharp drop in Bitcoin’s 80% share in the second quarter of 2020. Most of Bitcoin’s lost market share was carried over to Ethereum, which accounted for 25% of the transaction volume over the same period.
What is more interesting, however, is that institutions have also shown a demand for Defi tokens such as Uni, Sushi, Aave, and other Ethereum-based Defi protocols. As investors are also looking for cheaper ways to generate income, interest in so-called “Ethereum Killer” tokens such as Solana and Binance tokens has increased.
Growing Demand for Crypto Products
Genesis also reported a significant increase in lending. The company’s lending increased 700% year-over-year and 60% month-over-month, despite falling market prices over the period. This quarter marks the 13th consecutive quarter that the company has grown, which marks the incredible advancement of the market.
Genesis CEO Michael Moro believes that there are still major problems for institutions trying to enter the cryptocurrency field, but these problems will be resolved over time. Moro emphasized:
Some barriers to entry still exist for institutional investors, which is likely why we’re seeing such increased demand for Genesis’s more accessible single point of access for the maturing digital asset market.