Cryptocurrency exchange Okcoin has reported that the number and volume of operations by institutions increased significantly in the past year, driven largely by stablecoins and tokens in decentralized finance.
In a report published on October 26, Okcoin said that it had seen a 450% increase in the number of institutional clients on its platform between September 2020 and September 2021, as well as a 124% increase in institutional trading volume. during the same period. According to the report, 53% of purchases made by institutional investors in September were for altcoins. Furthermore, clients showed "a greater appetite for crypto assets other than Bitcoin" compared to previous years.
Specifically, the exchange reported that institutions had turned to "younger assets" in 2021, including MiamiCoin (MIA), the own token of the city of Miami launched by CityCoins on August 3, as well as Avalanche (AVAX), which was launched more than a year ago. This contrasts with buying behavior in 2020 and earlier, when "institutions exclusively favored altcoins that were at least four years old, such as Ether and Litecoin."
Related: Cointelegraph Consulting: How Avalanche is reinventing DeFi
"Institutional activity on the platform is indicative of macroeconomic sentiment among large-scale investors, with a clientele that includes asset managers, venture capital and hedge funds, retail brokers, payment processors and other entities around the world." Okcoin said.
Other companies in the cryptocurrency and blockchain space have reached similar conclusions based on data from trading platforms. In September, the analysis firm Chainalysis reported that transactions of more than $ 10 million accounted for more than 60% of DeFi transactions in the second quarter of 2021. CoinShares also reported that for a week in September, institutional interest in Solana (SOL) far exceeded that of Bitcoin (BTC) and ether (ETH).
Founded in 2013, Okcoin is one of the oldest crypto exchanges in the world and has been constantly expanding to serve clients in more than 185 countries. Although its headquarters are in the United States, the exchange recently obtained regulatory approval to operate in Malta and the Netherlands.
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