The company published a report on the global investments made on the platform in August, revealing that investors have returned to trading on altcoins such as Ethereum, but also on Ripple and Tezos, all of which saw an increase in trading last month.
All the most popular altcoins rose in August, except Cardano’s ADA, according to eToro data. Investors also invested in EOS and TRON to follow a late altcoin rally.
EOS saw a 640% increase in monthly trading on eToro from the fifteenth most traded crypto in July to the seventh in August.
Justin Sun’s TRON made similar moves, going from 12th to 8th place with a 390% increase in monthly trading activity. Investors took advantage of the price increase of both currencies, with EOS up 28% over the previous year and TRON up 126%.
ADA Cardano, which was the third most traded crypto asset in July, fell to fifth place with a 21% drop in investment activity on eToro compared to the previous month. Cardano successfully implemented Shelley’s upgrades to a decentralized network. Despite this, the currency increased from $0.139 on August 1 to $0.117 on August 31.
Tezos, one of the first blockchain to use the Proof of Stake protocol, rose one position to fourth, as investors took advantage of the upward trajectory of the currency’s price. Tezos has been one of the most popular assets in the last 12 months, with trading activity in August 2020 up 1365% from August last year.
Simon Peters, market analyst and crypto expert at eToro, explained:
„Tezos has seen a significant increase in trading on eToro, with less asset trading than bitcoin at the beginning of August, which may have encouraged some token purchases. Having already announced a partnership with the China’s Blockchain Service Network, Tezos recently announced the integration of Harbinger price oracles. This allows the Tezos network to use real world price data for DeFi applications, which I consider very positive for the long-term success of the network. The question now is: will the altcoins maintain the interest of retail investors, or will the increase in bitcoin prices usurp their popularity?“.
Ethereum growing thanks to DeFi
Ethereum has seen a particularly strong increase in terms of popularity, representing a 123% increase in trade compared to July. The Ethereum platform has been one of the main beneficiaries of the exceptional growth of decentralized finance (DeFi), a sector in circulation since 2017 but exploded in the last month.
In addition, Ethereum also launched its own Medalla testnet at the beginning of August, initiating the transition to a Proof of Stake system, which has aroused the enthusiasm of many users.
Simon Peters commented:
„August saw massive increases for top altcoin, particularly for EOS and TRON, as investors sought to take advantage of their excellent price performance. Investors also opted for Ethereum in August as co-founder Vitalik Buterin and his team continue with the launch of their long-awaited 2.0 upgrade. The launch of the Medalla testnet in August, a major development on the road to ETH 2.0, encountered some problems in the initial phase, but was clearly a step in the right direction. With Ethereum now at 462 dollars, the price increase is clearly a statement of intent from the DeFi community. The increase in activity around Ethereum shows that investors recognize the potential that exists in the DeFi space.