Market analysis confirms that Okcoin, one of the largest cryptocurrency exchanges, has recorded a significant surge both in numbers and trading volume of institutions over the past year. The rapid increase is largely driven by stablecoin and tokens in decentralized finance (DeFi).
In an annual report released on October 26, the crypto exchange reported a roughly 450% increase in the number of institutional clients trading between September 2021 and 2021. Over the same period, the exchange saw a 124% increase in institutional trading volume.
According to the report, general altcoins contributed 53% of all purchases made by institutional investors. It is worth noting that many clients showed “a greater appetite for non-Bitcoin crypto products” compared to previous years.
As the report states, many institutional clients within the exchange opted for relatively “younger assets” in 2021. Among the most traded crypto tokens includes MiamiCoin (MIA), a crypto token unleashed by CityCoins on August 03, and Avalanche (AVAX) that went live last year.
Nevertheless, this year’s purchasing behavior is different from previous years, when institutional investors exclusively focused on the first four years old, such as Ethereum and Litecoin:
“Institutional activity on the platform is indicative of macro sentiment among large-scale investors, with clientele including asset managers, venture capital and hedge funds, retail brokers, payment processors, and other entities around the globe.”
In another related development, other major firms within the cryptocurrency sector have also shown the same purchasing behavior, according to data acquired from the trading platforms. In September, Chainalysis, a comprehensive data analytic firm, confirmed that transactions that exceeded $10 million accounted for over 60% of DeFi transactions in Q2 2021.
In the same context, Coinshares also confirmed that institutional interest in Solana (SOL) outperformed that of Bitcoin (BTC) and Ether (ETH) over a week in September.
Founded in 2013, OkCoin is one of the world’s oldest cryptocurrency exchanges, with the trading platform now serving millions of customers in more than 185 countries. Although its main offices are in the United States, this crypto exchange recently secured regulatory approval to expand its services in Malta and the Netherlands.