Genesis Report Highlights ‘Emerging Role’ of Ethereum and Defi in Q2 2021

Genesis Digital, a leader in cryptocurrency trading, lending and custody, has released its Q2 reports. It confirms the “emerging position” that Ethereum (and defi) have within the industry. The report confirms that institutional interest is still growing in crypto despite the market crash of Q2 2021.

Genesis confirms Ethereum and Defi Market Growth

According to the Q2 2021 Market Observations Report, Genesis, a major cryptocurrency trading and lending desk, confirmed that emerging currencies such as Ethereum and defi-tokens have taken a significant part of market share. These currencies accounted for a large portion of the interest in bitcoin, historically the preferred cryptocurrency for institutional investors. Matt Ballensweig from Genesis, Head of Institutional Lending, stated that this is a significant change.

Bitcoin’s market dominance declined from more than 70% at the close of 2020 to less than 45% at Q2. Ether and many of the major decentralized finance tokens had more than doubled their prices since the start of 2019.

The Genesis report shows that bitcoin trading was responsible for nearly 47% of all trading on the platform. This is a drastic decrease from the 80% bitcoin share that was commanded in Q2 2020. The majority of bitcoin’s market share was lost to ethereum which accounted 25% of all volume traded during the same period.

What’s even more fascinating is the fact that defi tokens such as uni, sushi and other Ethereum-based protocols were also in demand by institutions. Investors were looking for lower yielding opportunities and a surge in interest in the “Ethereum Killer”, such as Binance token and Solana token.

The demand for crypto products continues to grow

Genesis also reported a significant increase in lending activity. The company saw a 700% YoY increase in loan originations and 60% quarter-on–quarter growth, despite the slowdown in market prices. This quarter marks the remarkable development that the market has experienced. It is the 13th consecutive quarter of growth.

Genesis CEO Michael Moro believes there are still serious problems for institutions trying out cryptocurrency, but these will be addressed in the future. Moro stressed:

There are still some barriers for institutional investors to enter the digital asset market. This is why Genesis’s single point of entry for this maturing market is so popular.