BTC demand falls as the institutes turn to DeFi. switch

BTC demand falls as institutions switch to DeFi as the early third quarter report shows the crypto market is growing, but there are setbacks when institutions switch to DeFi as we are more on the news of our bitcoin today Read the news.

Genesis recently released its Q3 market watch report which highlights some of the major trends in the market. According to the report, BTC demand tended to decline in the third quarter as there were no opportunities for traders to benefit from the spread between BTC prices on the spot and futures markets.

The company also noted a major structural shift in the market, beginning with the deleveraging of retail exchanges, and in the second quarter some exchanges began restricting leveraged services from being open for 30 days. The Genesis Report writes:

“In the first quarter of 2021, Genesis saw a significant decrease in the BTC share in our overall portfolio for the first time due to the relative lack of BTC trading opportunities. While this paused in the second quarter, it resumed in the third quarter when the GBTC premium inversion persisted and the baselines flattened. “

The average deletion of retail exchanges notes that with China’s crypto crackdown, we will see a shift towards institutionalization in the industry, which will only make Bitcoin less attractive to opportunistic traders. The company points out that more and more institutions are entering the defi room, and documents have reported a great appetite for ETH institutions to borrow and lend out decentralized applications. Emerging Layer 1 protocols have seen increased interest as many crypto institutions explore profit opportunities that offer some decent prices on stablecoin and ETH / BTC. This also resulted in an increase in the price of altcoins, which continued to rise in the third quarter.

One of the biggest bulls we’ve ever seen is, of course, Solana, who overtook Cardano after a new all-time high this week. The Genesis Report notes that SOL rose as BTC demand fell:

“In addition to increasing interest in ETH loans during the quarter, altcoins (alts) – and particularly L1 alternatives – saw increased demand and acted as natural liquidity pairs for DeFi profit opportunities.”

Despite the low level of interest in BTC, the anticipation of the first US futures-linked BTC ETF stimulated the market among traditional financial institutions such as investment banks and regulators, with real estate managers showing great interest in this product. In total, Genesis traded over $ 37 billion in the third quarter.

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