Bitcoin and ethereum, the two largest cryptocurrencies by value, have helped the combined crypto market price to surpass $ 2 trillion for the first time since mid-May, according to data from CoinGecko.
The price of bitcoin has risen by more than 30% over the past month, although its rally has been overtaken by the price of Ethereum, up almost 50% from this period in July (subscribe Now to Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters ready to earn 1000%).
This week, as part of its second quarter earnings statement, leading U.S. cryptocurrency exchange Coinbase revealed that Ethereum was the most traded cryptocurrency on the platform in the second quarter of the year, surpassing bitcoin for the first time.
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“We are seeing crypto rapidly maturing from its initial bitcoin trading use case to trading thousands of new assets, and adopting new use cases like decentralized finance (DeFi), non-fungible tokens ( NFT), smart contracts, decentralized autonomous organizations (DAOs) and more, ”San Francisco-based Coinbase said in its earnings report.
The price of ethereum has skyrocketed over the past year, climbing over 700%, as decentralized finance (DeFi) – using crypto technology to reinvent traditional financial products like loans and insurance without need banks – and non-fungible tokens (NFTs) – unique digital crypto tokens tied to online media have both become multibillion-dollar markets. Almost all DeFi and NFT funds are currently based and traded on the Ethereum blockchain.
The rush for Ethereum-based crypto apps and services has led many in the crypto community to predict that Ethereum could overtake bitcoin as the world’s largest cryptocurrency in value. Last week, ethereum underwent a major upgrade that aims to help the blockchain scale and make rising transaction fees more manageable.
Ethereum trading accounted for 26% of total Coinbase volumes in the second quarter, up from 21% in the previous three months. Meanwhile, bitcoin trading volume was only 24% in the second quarter, compared to 39% in the first.
“This is in large part due to the growing momentum behind the ethereum ecosystem,” said Jack O’Holleran, managing director of ethereum applications platform Skale Labs, in comments sent via email. “We see it in the growth of Ethereum addresses, up 65% in the last quarter, as well as a 75% increase in the number of on-chain NFT transfers over the past seven days.”
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Coinbase’s second-quarter profits exceeded market estimates, with profit driven by transaction volumes reaching $ 462 billion, from $ 335 billion in the previous quarter.
The exchange posted a net profit for the quarter of $ 1.6 billion, up nearly 4,900% from a year earlier, as the price of bitcoin and the price of ethereum rose sharply. oscillated. Coinbase posted net revenue for the quarter of $ 2 billion in net revenue.
Coinbase, one of the world’s largest cryptocurrency exchanges that now has more than 68 million users, went public with great fanfare thanks to a direct listing in April. Coinbase stock has fallen around 15% since its Nasdaq