EToro: DeFi Ethereum Approaching 2017 ICO Level

According to the quarterly report released on October 14th. On the eToro social trading platform in Q3 2020, interest in altcoin trading has grown significantly. Due to this, Bitcoin (BTC) has lost almost 40% of the world's trading volume on the exchange. 

According to the report, the quarterly altcoin trading volume has increased across the board. For example, among the top ten cryptocurrencies eToro, Binance Coin (BNB) and Tezos (XTZ) traded 46% and 37% respectively in Q3. Although still, this is a low result among the leading cryptocurrencies. 

In the third quarter, eToro Ethereum (ETH) and Cardano (ADA) transaction volumes increased by about 90%. The global transaction volume of Tron (TRX), NEO and EOS increased by 203%, 153% and 175%, respectively. In contrast, Bitcoin is the only cryptocurrency among the top ten cryptocurrencies of eToro, whose global trading volume fell by about 38%. 

Altcoin trading volume increased significantly in Q3

Among eToro US customers, the trend is largely the same. Although bitcoin transaction volume has increased by 17%, most altcoins have surpassed the first cryptocurrency so far and most have reached or exceeded 200% of the transaction volume.

The reason for this dramatic growth is largely due to the rapid development of the DeFi project, which is also giving a huge boost to the development of Ethereum.

The continued growth of Decentralized Finance (DeFi) has played a huge role in the surge in altcoins and Ethereum. In many cases, income has reached the level seen in the 2017 ICO.

The researchers noted that all Ethereum-based decentralized applications (including DeFi) require a certain level of ETH to run. And since Ethereum cannot be abstracted economically, it has become a key aspect of Ethereum's value proposition.

Currently, over 7.5% of the total ETH supply is locked into DeFi. By the beginning of 2020, this figure is only 2.7%. This shows that interest in Ethereum use cases is growing day by day and tells us that investors are interested in using ETH as collateral. The products are getting more confident. In theory, this means there will be less Ethereum on the market.

In the past few months, the growing popularity of DeFi has also played an important role in bringing new retail investors into the cryptocurrency space, driving the adoption of cryptocurrencies in general.

While there are signs of iterative infrastructure improvements and support from emerging organizations in Q2 2020, Q3 reminds us that crypto is still a retail-focused industry.


Joshua Frank, CEO of TIE, a digital currency asset data provider, said, although the $ 425 million investment in MicroStrategy is impressive. In the third quarter, undoubtedly the highlight was the growth of DeFi, the increase in the production of agriculture, NFT and altcoins.