eToro Unveils Most Popular Crypto Assets, Analyst Says Investors Bullish on Ethereum As DeFi Booms

  • Bitcoin, Ethereum, XRP, and Tezos all saw month-on-month trading gains
  • Investors flocked to EOS and TRON to document the late altcoin rally
  • Trading activity on all coins in August except Cardano’s ADA

New data from global investment platform eToro reveals that in August, retail investors returned to large-capitalization altcoins like Ethereum and XRP, as well as a renewed interest in Bitcoin.

All the coins in the top 10, except Cardano’s ADA, saw a monthly increase in transactions with investors taking positions in a slew of popular crypto assets.

Ethereum saw a particularly sharp increase in popularity with global eToro users in August, representing a 123% increase in transactions compared to July. The Ethereum platform has been a major beneficiary of the exceptional rise of decentralized finance (DeFi), a theme that has been around since 2017 but exploded in the last month.

DeFi allows users to trade securities and use crypto assets as collateral without the use of a third party, with many DeFi applications based on the Ethereum protocol. Ethereum also launched its Medalla testnet in early August as it begins its transition to a proof of stake mechanism.

EOS and TRON both saw huge gains in month-on-month trades as the two coins posted positive price trends towards the end of August, while other altcoins declined.

EOS, which saw a 640% increase in month-on-month trades on eToro, jumped from the 15th most traded crypto asset in July to 7th in August. Justin Sun’s TRON made similar moves from 12th to 8th place with a 390% increase in monthly trading activity. Investors benefited from the price hikes of both currencies, with EOS up 28% year-to-date and TRON an impressive 126%.

Cardano’s ADA, which was the third most traded crypto asset in July, dropped to fifth with a 21% decline in investment activity on eToro compared to the previous month. Cardano successfully implemented its Shelley upgrades when it moved to a decentralized network. Despite this, the coin fell from $ 0.139 on August 1 to $ 0.117 on August 31.

Tezos, one of the first blockchains to use a proof of stake mechanism, moved a position to fourth as investors took advantage of the coin’s upward price trajectory. Tezos has been one of the most popular crypto assets for the past 12 months, with trading activity in August 2020 up a whopping 1365% compared to last August.

Simon Peters, market analyst and crypto expert at eToro, commented:

“August saw huge gains for top altcoins in particular EOS and TRON as investors sought to capitalize on their excellent price performance.

Investors also flocked to Ethereum in August as co-founder Vitalik Buterin and the team continue to roll out their highly anticipated 2.0 upgrade. The release of the Medalla testnet in August, a major development on the way to Eth 2.0, had some teething problems, but was clearly a step in the right direction… the price increase is clearly a statement of intent from the DeFi community. The increase in activity around Ethereum shows that investors recognize the potential in the DeFi space.

Tezos saw a significant increase in trades on eToro, with crypto assets trading lower versus bitcoin in early August, potentially encouraging some inflows into the token. Tezos has already announced a partnership with the Chinese Blockchain service network and recently announced the integration of Harbinger price oracles. This allows the Tezos Network to use real pricing data for DeFi applications, which I consider very positive for the long-term success of the network.

The question now is, will altcoins maintain the interest of retail investors or will rising bitcoin prices take over their popularity? “


Disclaimer
eToro is a multi-asset platform that offers equity and cryptocurrency investing as well as CFD trading.

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