LMAX Digital volumes were exceptionally strong on Wednesday. Overall volume came in at $2.37 billion, 28% above the average daily total volume over the past 30 days. This also put total notional volume over the past 30 days at $55.57 billion. We did see a bit of a decline in volume across the board from Wednesday to Thursday, though this was more a function of a very active Tuesday and slower news day on Wednesday. Bitcoin volume for Wednesday was $1.34 billion. Ether volume for Wednesday was $539 million.

Ether is the cryptocurrency really turning heads in 2021. Ether has extended its record run of gains, all while bitcoin remains in a state of consolidation since topping out at its record high back on April 14th. Year to date, ether is up 361% against the US Dollar, as compared to bitcoin, up 94% against the Buck. It seems investors who took on exposure to bitcoin in recent months are now looking for other areas to diversify their crypto exposure. Given Ethereum’s different value proposition, there has been great interest in the currency driving this alternative blockchain. Some of the latest headlines in the space are around Fidelity launching a digital asset data platform, Paypal considering the possibility of its own stable coin, and a Mastercard poll revealing 40% of consumers having plans to use cryptocurrency in the next year.

Ether is also a prime beneficiary of Fed policy which continues to incentivize investment in risk assets. Whereas bitcoin is viewed as a story of value asset, Ethereum is the blockchain driving innovation in the cryptosphere and it therefore makes sense to see its currency outperforming in such favourable market conditions. But ether also has a way of being a laggard to bitcoin price action and with the currency so extended and Fed officials and the Treasury Secretary warning of an overheated market, we would caution against expectations for the run to extend much further at this stage.