Coinbase Reveals Ethereum Surprise As The Bitcoin And Crypto Market Price Smashes Through $2 Trillion

Coinbase Reveals Ethereum Surprise As The Bitcoin And Crypto Market Price Smashes Through $2 Trillion

Bitcoin and ethereum, the two largest cryptocurrencies by value, have helped the combined crypto market price surge above $2 trillion for the first time since mid-May, according to CoinGecko data.

The bitcoin price has added over 30% during the last month, though its rally has been outpaced by the ethereum price, up almost 50% on this time in July (subscribe now to Forbes' CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains).

This week, as part of its second-quarter results statement, major U.S. crypto exchange Coinbase revealed that ethereum was the most traded cryptocurrency on the platform in the second quarter of the year, jumping ahead of bitcoin for the first time.

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"We are seeing crypto quickly mature from its initial use case of trading bitcoin to the trading of thousands of new assets, and the adoption of new use cases like decentralized finance (DeFi), non-fungible tokens (NFTs), smart contracts, decentralized autonomous organizations (DAOs), and more," the San Francisco-based Coinbase said in its earnings report.

The ethereum price has soared over the last year, climbing over 700%, as decentralized finance (DeFi)—using crypto technology to reinvent traditional financial products like loans and insurance without the need for banks—and non-fungible tokens (NFTs)— unique digital crypto tokens tied to online media—have both become multi-billion dollar markets. Almost all DeFi funds and NFTs are currently based and traded on ethereum's blockchain.

The scramble for ethereum-based crypto apps and services has led many in the crypto community to predict ethereum could overtake bitcoin as the world's biggest cryptocurrency by value. Last week, ethereum underwent a major upgrade that's aiming to help the blockchain scale and make surging transaction fees more manageable.

Ethereum trading made up 26% of Coinbase's total volumes in the second quarter, up from 21% in the previous three months. Meanwhile, bitcoin trading volume made up just 24% in the second quarter, down from 39% in the first.

"This is in large part due to the growing momentum behind the ethereum ecosystem," Jack O'Holleran, the chief executive of ethereum app platform Skale Labs, said in emailed comments. "We see this in the growth of ethereum addresses, up 65% just last quarter, as well as a 75% increase in the number of on-chain transfers of NFTs in last seven days."

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Coinbase's second-quarter earnings beat market estimates, with profit boosted by trading volumes climbing to $462 billion, from $335 billion in the previous quarter.

The exchange posted net profit for the quarter of $1.6 billion, up nearly 4,900% from a year earlier, as the bitcoin price and ethereum price swung wildly. Coinbase posted net revenue for the quarter of $2 billion in net revenue.

Coinbase, one of the largest cryptocurrency exchanges in the world that now boasts over 68 million users, went public to much fanfare through a direct listing in April. Coinbase stock has fallen some 15% since its Nasdaq debut, regaining some ground this week.

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