- The second quarter turned to be massive for crypto trading service providers providing exponential growth.
- The ETC Group clocked a 2000 percent surge in total transaction volumes for Ethereum.
London-based ETC Group has minted major money through its Bitcoin offerings. The ETC Group launched its first Bitcoin exchange-traded product back in June 2021 in the U.K.
For the month of April 2021, Bitcoin (BTC) generated an annualized revenue of $2.986 billion USD for the ETC Group. This was even higher than Square Inc’s Accounting rate of return (ARR) in 2018 and Shopify’s ARR in 2020. This is a significant milestone considering its recent entry into the crypto space.
Apart from Bitcoin, the ETC Group also reported its earnings for Ethereum and Litecoin. The fee generated through Ethereum transactions has surged 5000 percent on a year-on-year basis. Speaking of this growth, Bradley Duke, CEO of ETC Group said:
In the past few months we’ve seen leading cryptocurrencies generate more income through transaction fees than some of the world’s most valuable companies have done in recent years. We’re seeing increasing adoption of crypto assets, on institutional balance sheets in place of cash treasuries, and now even in government pension funds.
More broadly we’re seeing growth in crypto payments, and while some countries continue to adopt a cautious or hostile stance to bitcoin others like El Salvador have made historic strides to integrate bitcoin into their national currency models.
Here’s a short excerpt of hows each of the three cryptocurrencies contributed.
- Total transaction volumes for Ethereum surged 2000 percent year-over-year from $36.7 billion to $777.1 billion.
- Decentralized exchange (DEX) volume surge 8300 percent YoY in Q2. The figure jumped from $3.4 billion in Q2 2020 to $283.4 billion in Q2 2021.
- Also, it was the most significant quarter with the USD value transfer totaling $28.1 billion.
Crypto companies rejoice Q2 2021 earnings
Crypto trading platforms have been having a gala time during the second quarter of this year. Q2 2021 started on a strong footing with Bitcoin and the overall crypto market hitting their all-time highs by mid-April. Thus, it contributed to major transaction volumes on the trading platforms.
Later, major volatility ensued in the crypto space leading to heightened trading activity in the market. This further spurted up trading activity at the exchanges. The ETC Group isn’t alone to benefit from the high trading activity in the market.
Jack Dorsey-owned digital payments company Square Inc. recorded a 200 percent growth during the second quarter this year. The company recorded $546 million in Bitcoin services gains, a 94 percent jump year-over-year. The company announced:
In June, Cash App reached 40 million monthly transacting active customers. In the second quarter, volume sent through Cash App’s network increased by nearly 4x compared to two years ago, driven by growth in existing customers and newer customers transacting more frequently.
Furthermore, a report from The Korean Herald two days back showed that the three top banks in South Korea reported a 140 percent surge in their crypto transactions revenue. K bank, NH Nonghyup Bank, and Shinban Bank made a total of 16.7 billion Won in Q2 2021. This is double the 7 billion Won made during the first quarter.
