The Okcoin cryptocurrency exchange reported a significant increase in the number and volume of institutional transactions over the past year, mainly due to stablecoins and tokens in decentralized finance.
In a report released on October 26, Okcoin said the number of institutional clients on its platform increased 450% from September 2020 to September 2021, and the volume of trade by organizations increased 124% over the same period. According to the report, 53% of institutional purchases in September were altcoins. In addition, customers are showing a “greater appetite for non-Bitcoin crypto assets” than in previous years.
Specifically, stock market reporting firms switched to “younger assets” in 2021, including MiamiCoin (MIA) – the City of Miami’s own token issued by CityCoins on August 3 – and Avalanche (AVAX), which came out over a year ago. This is in contrast to buying behavior in 2020 and earlier, when “Institutions particularly like altcoins that are at least four years old, such as Ether and Litecoin”.
Related: Cointelegraph Consulting: How Avalanche Reinvents DeFi
“The institutional activity on the platform reflects the macro sentiment among large investors, with a clientele that inc8ludes asset managers, venture capitalists and hedge funds, institutional investors,” said Okcoin, private brokers, payment processors and other institutions worldwide.
Other companies in the crypto and blockchain space have come to similar conclusions based on data from trading platforms. In September, analytics firm Chainalysis reported that transactions of more than $ 10 million in the second quarter of 2021 accounted for more than 60% of DeFi transactions, Bitcoin (BTC) and Ether (ETH).
Established in 2013, Okcoin is one of the oldest cryptocurrency exchanges in the world and has gradually expanded to serve customers in over 185 countries. Although its headquarters are in the United States, the exchange recently received regulatory approval to operate in Malta and the Netherlands.