Coinbase states that the first half of 2021 was one of the most active periods on record for the crypto market, resulting in new all-time highs for asset prices, user adoption, and trading volume.
According to a study by Coinbase Institutional, global ethereum trade volume increased 1,461 percent from $92 billion to $1.4 trillion in the first half of 2019, while total bitcoin trade volume reached $2.1 trillion, up 489 percent from $356 billion during the same period in 2020.
As per the study released earlier this week, crypto witnessed ongoing price volatility. Total market capitalisation began the year at $769 billion, peaked at $2.4 trillion in May, and concluded the half at $1.4 trillion, recording an 86 percent year-to-date net gain.
In terms of individual assets, bitcoin returned a 280 percent profit over a 12-month period. Ethereum outshone bitcoin, the S&P 500, and gold in price performance, rallying 210 percent over the past six months till June 30. During this year, bitcoin has risen 20 percent, the S&P 500 has gained 14 percent, and gold has dropped 6.7 percent.
After gaining more than 7 percent on Wednesday, the digital asset was trading above the $40,000 mark. According to CoinGecko, it was still roughly 40 percent down from an all-time high level of $64,804.72.
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Furthermore, in the first half of the year, ethereum outpaced other benchmark assets. Some of the largest institutional investors, including hedge funds, endowments, and corporations, added or increased their exposure to ethereum this year. They believe that the asset has a long-term staying power comparable to bitcoin and that it plays a different role in their portfolios. Ethereum-based decentralised finance (DeFi) is gaining enormous traction and many investors are optimistic that it will turn it into a yielding asset and that the EIP-1559 upgrade will hold back inflation.
The worldwide number of bitcoin holders also increased as crypto knowledge and ease of access improved. The total number of unique bitcoin addresses with a bitcoin balance greater than zero concluded the first half of the year at 38 million, up from 33 million at the start of the year.
The US-listed crypto exchange stated that some of the fastest-growing access points for bitcoin holders employ omnibus wallet infrastructures on their backends to hold funds for many end-users. However, this statistic significantly lags actual user growth.
