HashKey Digest

21st May 2021

The 2021 Q1 Report of Genesis Trading

What does the magnificent 2021 Q1 mean for Genesis Trading?

Loans increased significantly:

 

 

In Q1, Genesis added over $20 billion in new originations, compared with a total of $21 billion since its establishment until the end of 2020

 

 

ETH loans began to rise sharply:

 

 

BTC loans began to decline as GBTC’s arbitrage activity weakened. BTC’s loan rate also fell from 3-6% to 1-3%.

Defi stimulates ETH and Alt lending: The reason is that traders can lend ETH on CeFi and make profits from DeFi, so Ethereum has on loan increased from $460 million in 2020Q4 to $2.4 billion in 2021Q1, a 400% increase.

Genesis traded $31.5 billion in spot in Q1, an increase of 287%, much of this volume came from new market participants.

 

 

 

Several major reasons for the decline in BTC dominance:

  • DeFi became a phenomenon in the crypto community. Celebrity investors became vocal proponents of DeFi protocols.
  • The institutional adoption of ETH became a major theme on the back of DeFi’s growth. EIP 1559 provided another deflationary catalyst. Ethereum ETFs and futures were also accessed by traditional exchanges.
  • Ethereum’s competitors also began to get attention: SOL/DOT/BNB

The quarterly report of Genesis has always been one of the best ways to look at the market.

Link to the original text: https://genesistrading.com/about/insights/

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