Odaily Frontline｜eToro Report: DeFi is expected to reach the level of the ICO boom in 2017

余YU

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2020-10-16 00:15 (UTC+8)

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The trading volume of altcoins and DeFi projects is gradually surpassing that of Bitcoin.

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The trading volume of altcoins and DeFi projects is gradually surpassing that of Bitcoin.

This article comes fromDecrypt, by Liam Frost

Odaily Translator |

Summary:

This article comes from
, by Liam Frost
Odaily Translator |

Summary:According to eToro’s quarterly report, altcoin trading volumes increased significantly in the third quarter.

Ethereum-based decentralized finance (DeFi) platforms have played a major role in this growth.

DeFi may reach the levels of the 2017 ICO boom.

Cryptocurrency trading platform eToro released its quarterly report on October 14, showing that

, saw a major shift towards altcoin trading in the third quarter of 2020, while global trading volume of BTC on its exchanges decreased by nearly 40%.

According to the report, in the third quarter, the volume of global copycat transactions increased substantially across the board. For example, among eToro's top 10 cryptocurrencies, Binance Coin (BNB) and Tezos (XTZ) saw volume increases of 46% and 37%, respectively, during the third quarter. While growing, both trailed among the top coins in volume growth.

Both Ethereum (ETH) and Cardano (ADA) trading volumes on eToro increased by approximately 90% in the third quarter. Global trading volumes for Tron (TRX), NEO, and EOS soared 203%, 153%, and 175%, respectively. In contrast, Bitcoin was the only coin among eToro's top 10 cryptocurrencies to see a decline in global trading volume, falling by 38%.

Among eToro's US clients, the trend is basically the same. While Bitcoin’s trading volume increased by 17%, most altcoins have outperformed Bitcoin so far, with most trading volumes rising, and some even rising by more than 200%.

This surge is mainly due to the soaring popularity of DeFi projects, which also gave Ethereum a huge boost.

Guy Hirsch, managing director of eToro USA, explained, “The continued rise of DeFi has played a huge role in the surge in altcoins and Ethereum, with returns approaching levels seen during the ICO boom of 2017 in many cases.”

The researchers noted that all Ethereum-based decentralized applications, including DeFi, require ETH to some extent to function. Since ETH "cannot be abstracted economically", this becomes a key aspect of ETH's value proposition.