David Duong, Head of Institutional Research at Coinbase, recently talked about institutional investors’ interest in cryptocurrencies beyond Bitcoin and Ethereum. He noted that institutional flows on Coinbase are increasingly diverted to other cryptocurrencies besides BTC and ETH. Here are those altcoins that attract the attention of institutional investments…
Factors driving institutional investors to look for different cryptocurrencies
Duong noted that his remittances are broader than just Bitcoin, and that almost all institutional flows on Coinbase are for altcoins. According to the expert, 55% of institutional flows on Coinbase are still in Bitcoin and ETH, leaving the balance for altcoins.
Duong noted that there is still a lot of focus on what’s going on with the rest of the ecosystem outside of just Bitcoin and Ethereum. He also added that while market conditions remain relatively uncertain due to macro factors, seasonality and the possibility that crypto is associated with other risk assets, upcoming updates of Ethereum will be on people’s radar.
Institutional investors’ appetite for altcoins and cryptocurrencies grows
Institutional investors’ interest in cryptocurrencies has increased in recent years. This trend is due to several factors, including the growth of the cryptocurrency market, the growing number of institutional exchanges, and regulatory clarity.
The growth of the cryptocurrency market has led to increased institutional interest in cryptocurrencies. As you follow on Kriptokoin.com, the overall market cap has increased significantly over the past few years, reaching over $2 trillion in early 2021. This growth has attracted the attention of institutional investors, who are always looking for new investment opportunities.
Which altcoins are gaining increasing institutional attention?
Regulatory clarity also contributes to increased institutional interest in cryptocurrencies. Governments around the world are starting to realize the potential of cryptocurrencies and are enacting laws to regulate the industry. Following this, institutional investors are also starting to show interest in stablecoins and DeFi coins. The DeFi projects that Coinbase Head of Institutional Research, David Duong, have stated that they are collecting institutional investors are as follows:
- Lido Staked Ether (sTH)
- Dai (DAI)
- Uniswap (UNI)
- Chainlink (LINK)
- Lido (LDO)
- The Graph (GRT)
- AAVE (AAVE)
- Frax (FRAX)
- Synthetix Network (SNX)
- Maker (MKR)
The 10 largest stablecoins, which are stated to attract the attention of institutional investors in the report of Coinbase, are as follows:
- Tether (USDT)
- USD Coin (USDC)
- Binance USD (BUSD)
- Dai (DAI)
- TrueUSD (TUSD)
- Pax Dollar (USDP)
- Gemini Dollar (GUSD)
- USDD (USDD)
- Frax (FRAX)
- USDJ (USDJ)
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