• Altcoins, according to Okcoin, are driving institutional interest in cryptocurrency for 2021

  • Institutional investors’ recent purchasing behavior contrasts with that of 2020 and earlier, when “institutions exclusively favored altcoins that were at least four years old, such as Ether and Litecoin.”

    Exchange of cryptocurrencies According to Okcoin, the number and trading volume of institutions has increased significantly in the last year, owing primarily to stablecoins and tokens in decentralized finance.

    Okcoin reported a 450 percent increase in the number of institutional customers on its platform between September 2020 and September 2021, as well as a 124 percent increase in institutional trading volume over the same period in a report released on Tuesday. According to the report, institutional investors purchased altcoins for 53% of their purchases in September. Furthermore, compared to previous years, customers demonstrated “a greater appetite for non-Bitcoin crypto assets.”

    In particular, the exchange reported that in 2021, institutions were turning to “younger assets,” such as MiamiCoin (MIA) — the city of Miami’s own token released by CityCoins on Aug. 3 — and Avalanche (AVAX), which launched more than a year ago. In contrast, “institutions exclusively favored altcoins that were at least four years old, such as Ether and Litecoin” in 2020 and earlier.

    “Institutional activity on the platform reflects macro sentiment among large-scale investors, with clients including asset managers, venture capital and hedge funds, retail brokers, payment processors, and other entities from around the world,” Okcoin said.

    Based on data from trading platforms, other firms in the crypto and blockchain space have reached similar conclusions. Chainalysis, an analytics firm, reported in September that transactions worth more than $10 million accounted for more than 60% of DeFi transactions in Q2 2021. CoinShares also reported that institutional interest in Solana (SOL) far outpaced that of Bitcoin (BTC) and Ether (ETH) over a week in September (ETH).

    Okcoin, which was founded in 2013, is one of the world’s oldest cryptocurrency exchanges, and it has steadily expanded to serve customers in over 185 countries. Despite having its headquarters in the United States, the exchange recently received regulatory approval to operate in Malta and the Netherlands.

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