ETH Trading Volume Passes BTC, Reaches ATH in Daily Spot Volume

After a tumultuous few weeks in the crypto world, the total market trading volume is again trending upward, as prices begin to see some recovery. With the dust settling, the market is again seeing Ethereum’s 7-day average trading volume eclipsing that of Bitcoin, displaying Ethereum’s incredible growth, following, and continued interest. Despite Ethereum’s edge, both networks have had incredible growth in volume over the past month.

As seen in the data from Messari below, Bitcoin has historically had the higher spot trading volume of the pair. This has recently shifted, as more and more interest is being taken in Ethereum’s capabilities and potential for growth. As an aside, when comparing trading volumes of Bitcoin and Ethereum, it is essential to keep in mind that Bitcoin’s market cap is more than double that of Ethereum, making Ethereum’s pass margin more impressive.

Exponential Ethereum Trading Volume

Just 14 days ago, Ether price reached an all-time-high of $4,356.99, soon after dipping to a 30-day low of $1,853.14 on May 23rd. Despite the correction, ETH has had a phenomenal year when compared to BTC. Now wavering around the $2,800 mark, trading volume is seeing tremendous growth. 

Over the past 24 hours, Ethereum’s trading volume has been higher than Bitcoin’s by more than $6.5 billion. Much of this can be attributed to the flourishing DeFi and NFT communities on the Ethereum network. 

Debatably, even more impressive is Ethereum’s volume to market capitalization ratio of 16.24%, compared to a mere 6.39% for Bitcoin. This is a dramatic statistic for Ethereum, exemplifying its key role as a utility token. With high trading volumes, and increasing price, Ethereum does have a bullish outlook at the moment.

In addition, much excitement surrounds Ethereum recently piquing the interest of institutional investors. Just last Friday, a report from Goldman Sachs highlighted Ethereum’s value:

 “As cryptocurrency use in DeFi and NFTs becomes more widespread, ether will build its own first-mover advantage in applied crypto technology.” 

Comments such as these, paired with the surmounting trading volume on the Ethereum networks makes the “flippening” much more imminent. Spot trading volume trends are classified as a leading indicator, giving more meaning to the growing volumes.

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High Gas Fees Unable to Scare Away ETH Investors

The cost of transactions on the Ethereum network has been on the rise for nearly the entirety of the blockchain’s existence. Although, the highly anticipated protocol update: EIP 1559 could change gas fees as we know them. Currently, the average transaction price is up nearly 20x compared to just one year ago, although it has dropped considerably in the past few days.

Seemingly, these growing fees would drive away users, but despite the high gas fees on the Ethereum network, investors continue to trade as much as ever. Looking at the aforementioned trading volumes, many users are currently willing to pay the fees to use the network, although there are many smaller blockchains that are looking to provide users with lower fees, as displayed in a tweet by Binance founder, CZ:

Even with the low fees, BSC trading volume is miniscule compared to that of Ethereum and Bitcoin. High gas fees do not seem to be a major deterrent for people trading on the Ethereum network, which provides great hope for lowering Bitcoin dominance, which still currently stands at 63.5%, but looks to be dropping—at least for now.

It seems that even with the high gas fees on the Ethereum network, ETH trading volume is topping that of BTC more and more every day. Are high fees driving you away from Ethereum, or are you adding to the volume? We’d love to hear from you in the comments below.