LMAX Digital volumes were quite healthy on Monday, with the week getting off to a great start. Overall volume came in at $1.75 billion, 2% above the average daily total volume over the past 30 days. The big move came away from bitcoin, where things continue to be more tame right now. Bitcoin volume was actually down 19% from its 30 day average daily volume on Monday at $805 million. All of the action was in the ether market, where the price has been exploding to record highs against the US Dollar. On Monday, we saw a whopping $663 million in ether volume, some 70% above LMAX Digital average daily volume for ether over the past 30 days.

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 352% against the US Dollar, as compared to bitcoin, up 92% 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 Chair Powell warning of froth in risk assets last week, we would caution against expectations for the run to extend much further at this stage.