Crypto.com surpasses Coinbase in trading volume as institutional demand grows

The trading volume was largely boosted by new TradFi institutions, along with the launch of the first spot Ether ETFs.
The trading volume was largely boosted by new TradFi institutions, along with the launch of the first spot Ether ETFs.

Crypto.com has surpassed Coinbase exchange in trading volume, boosted by a growing list of institutional clients and the launch of the first spot Ether exchange-traded funds (ETFs) in the United States.

The centralized crypto exchange (CEX) Crypto.com saw a 23% increase in reported 24-hour trading volume, which rose to $3.16 billion on Aug. 1, surpassing Coinbase’s $2.12 billion, according to Messari data.

Top 10 exchanges by spot trading volume. Source: Messari

The increase in trading volume is mainly due to the exchange’s growing list of institutional clients, according to Giuseppe Giuliani, managing director of Crypto.com.

Giuliani attributes this growth to stronger market conditions along with an improved product offering. He told Cointelegraph:

“This growth has been primarily driven by the acquisition of new clients on the platform, both large institutions and advanced retail traders, and is being supported by stronger market conditions in 2024.”

Continued institutional adoption is crucial for cryptocurrencies like Bitcoin (BTC) to reach new all-time highs. According to some analysts, Bitcoin’s “ultimate price” could surpass $700,000 if the current adoption curve can grow by fourfold.

BTC adoption s-curve. Source: Willy Woo

Related: $35T US national debt could bolster Bitcoin’s adoption as ‘hard money’

US Ether ETF launch significantly contributed to trading volume boost

In a historic milestone for the industry, the first spot Ether ETFs launched for trading in the United States on July 23.

The launch of the spot Ether (ETH) ETFs has significantly contributed to Crypto.com’s growing trading volume, according to Giuliani:

“In the week of July 21 during which Ether ETF was launched, we have seen double-digit growth in our exchange’s Ether spot and perpetual volume week-on-week, building on consecutive weeks of robust volume growth.”

The exchange has also seen an uptick of interest from companies in the traditional finance (TradFi) space, Giuliani told Cointelegraph.

Related: Bitcoin, gold on track to break out as ‘macro summer’ begins — Analyst

Bitcoin and crypto open interest on the rise, but BTC’s price remains subdued

Showcasing the growing investor interest, Bitcoin’s open interest hit a record $39.46 billion on July 29, suggesting that a breakout may be imminent.

Open interest on Crypto.com has also seen a nearly fourfold increase since the beginning of 2024, mainly due to new institutional entrants, said Giuliani:

“We have seen a strong uptick in volume and open interest coming primarily from new clients, in particular large institutions both from TradFi and crypto-native backgrounds.”

However, the price of Bitcoin remains below the $65,000 mark, awaiting increased institutional interest to drive more inflows into the world’s first cryptocurrency.

Magazine: Ethereum price will lag for ‘months’ as Bitcoin surges: X Hall of Flame, Roman