Genesis Confirms Ethereum and Defi Market Rise in Q2 Report

Genesis Digital, a prominent cryptocurrency trading, lending, and custody desk, has issued its Q2 Market Observation Report, confirming that emergent currencies like Ethereum and defi tokens have taken a relevant part of the market.

These currencies have taken a large chunk of attention away from Bitcoin, which has traditionally been the go-to cryptocurrency for institutional investors, according to Genesis.

"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," stated Matt Ballensweig, Head of Institutional Lending at Genesis.

Bitcoin trade accounted for over 47% of all transactions on Genesis' platform, according to the Report. However, this is a significant decrease from the 80% market share Bitcoin held in Q2 2020. The majority of Bitcoin's market share was lost to Ethereum, which accounted for 25% of all volume exchanged over the same time period.

Institutions, on the other hand, exhibited interest in Defi tokens such as Uni, Sushi, Aave, and other Ethereum-based Defi protocols. Furthermore, as investors sought cheaper ways to generate income, demand in so-called "Ethereum Killer" tokens like Solana and Binance token grew.

Genesis also reported a significant rise in lending activity. Despite the market's downturn in pricing, the firm saw a 700% year-over-year rise and a 60% quarter-over-quarter increase in loan originations. The firm has grown for the thirteenth quarter in a row, indicating the market's amazing expansion.