Crypto.com has overtaken Coinbase in trading volume, surging to $3.16 billion on August 1, driven by institutional clients and spot Ether ETFs.

Thanks to an increasing number of institutional clients and the introduction of the first spot Ether exchange-traded funds (ETFs) in the US, Crypto.com has outpaced Coinbase exchange in terms of trading volume.

The reported 24-hour trade volume of the centralized crypto exchange (CEX) Crypto.com jumped 23% to $3.16 billion on Aug. 1, exceeding Coinbase's $2.12 billion, according to data from Messari.

The expanding list of institutional clients is the primary driver of the increase in trading volume, according to Giuseppe Giuliani, managing director of Crypto.com.

Stronger Market Circumstances Drive Growth

Stronger market circumstances and an improved product offering are the reasons behind this growth, according to Giuliani. This is what he told Cointelegraph:

“This growth has been primarily driven by the acquisition of new clients on the platform, both large institutions and advanced retail traders, and is being supported by stronger market conditions in 2024.”

Per Cointelegraph, for Bitcoin and other cryptocurrencies to continue their meteoric rise, widespread institutional investment is essential. If the present acceptance curve can increase by a factor of four, some analysts predict that Bitcoin's "ultimate price" might go beyond $700,000.

On July 23, the first spot Ether ETFs went live for trading in the US, marking a significant milestone for the industry.

Ether ETFs Boost Trading Activity

Giuliani claims that the introduction of spot Ether ETFs is a major factor in the increasing trading activity on Crypto.com:

“In the week of July 21 during which Ether ETF was launched, we have seen double-digit growth in our exchange’s Ether spot and perpetual volume week-on-week, building on consecutive weeks of robust volume growth.”

According to Giuliani's interview with Cointelegraph, the exchange has also noticed an increase in interest from traditional finance (TradFi) companies.

On July 29, Bitcoin's open interest reached a record $39.46 billion, indicating that investor interest is on the rise and could lead to a breakout in the near future.

New Clients Drive Trading Growth

According to Giuliani, new institutional participants are largely responsible for the approximately fourfold growth in open interest on Crypto.com since the beginning of 2024:

“We have seen a strong uptick in volume and open interest coming primarily from new clients, in particular large institutions both from TradFi and crypto-native backgrounds.”