Coinbase Inc. has released its earnings report for Q3, 2021, in which it has disclosed the trading volumes of various trading pairs, including Bitcoin and Ethereum. According to the report, Ethereum once again overtook Bitcoin's first place in trading volume for the second quarter straight.
In the report section "Key Metrics," the company shows trading volume percentages. In the third quarter of 2021, Ethereum took 22% of the overall trading volume on the platform, while Bitcoin settles with 19% only.
An additional 59% of the overall trading volume has been taken by other crypto assets.
Coinbase's quarterly performance
In Q3, retail trading volume on Coinbase was $93 billion, which is a 36% decrease compared to the volume in Q2. According to the report, the decline correlated with overall volume decline on both derivatives and spot markets.
Retail made up 28% of the total trading volume. As Coinbase reports, the main reason behind the decline in trading volume is a drop in volatility on the market. Since retail traders are mostly trying to catch short-term profits, volatility plays a key role in their fund distribution.
Asset allocation on the platform
While Bitcoin remains in second place by trading volume, it still holds first place by assets held on the platform with 42% of all funds remaining in Bitcoin and only 22% in Ethereum. But the reason behind it is that most trading pairs are tied to BTC and cannot be traded without it.