LMAX Digital volumes were quite impressive in April, with total volume coming in at over $50 billion. And this past Friday, we saw total volume for the day come in at $1.73 billion, just about 3% above the average daily volume over the past 30 days. Interestingly enough, though we did see a pickup in bitcoin volume this past Friday, the same could not be said for ether, with volume dropping from $428 million on Thursday to $311 on Friday. We think this is interesting because we’ve also been seeing an ongoing push to fresh record highs in the price of ether, which could warn the rally is less convincing with less volume behind it.

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 323% against the US Dollar, as compared to bitcoin, up 100% 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.

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.