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3 Reasons Why Ethereum Trading Volume Surpasses Bitcoin’s, According to Coinbase CFO

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Wed, 08/11/2021 - 14:21
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Yuri Molchan
Chief financial officer of Coinbase shares what she believes to be three reasons why Ethereum trading volume has exceeded that of Bitcoin
3 Reasons Why Ethereum Trading Volume Surpasses Bitcoin’s, According to Coinbase CFO
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In a recent talk with CNBC Squawk Box host Andrew Sorkin, the chief financial officer of leading U.S.-based crypto exchange Coinbase named three reasons why she believes the Ethereum trading volume has been outpacing that of Bitcoin in the first quarter of 2021.

Besides, she reckons that institutional investors on Coinbase will be more active than retail ones.

Three reasons for ETH to surpass BTC in trading volume

The CFO of Coinbase Alesia Haas believes that the growth of Ethereum trading volume versus that of Bitcoin comes down to three reasons: the growth of the non-fungible token industry on Ethereum, the increasing volume of ETH locked in the Ethereum 2.0 deposit contract and the gradual transition of the network to the proof of stake (PoS) consensus algorithm from the proof of work (PoW) one.

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Coinbase likely to shift to more institutional money in the future

When asked whether Coinbase is going to see more inflows of institutional money or cash from retail investors, she said that it is likely to be institutional ones.

As per Haas, Coinbase is "building deep roots" at the moment with their institutional clients—which include Elon Musk's Tesla and SpaceX—looking for custody services and continuing to invest in crypto.

The CFO stated that institutions appreciate that Coinbase has taken care of security with large investments and the fact that Coinbase has never suffered a hacker attack and never lost any of its investors' crypto since the exchange began operating.

After institutions receive crypto custody services, they go into trading on Coinbase, buying data services and then moving into the borrow-lend crypto products that Coinbase has been deploying.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.