eToro has reported that investors developed cold feet towards its cryptocurrencies between April and June this year with the exception of Tezos.
The second quarter of 2020 was marked by low investor activities in almost all cryptocurrencies on eToro. Only Tezos (XTZ) was valued by investors during the period.
Although there was a little increase in the interest of Tezos by eToro users of up to 2.53%, it was sufficient for the cryptocurrency to perform better than others having recorded a growth rate of 8.12%. Many other assets on eToro performed badly as they grew smaller by more than 10%. It is believed that Tezos did better in general because of its low level of activity in the first quarter.
eToro users went for equities
Joshua Frank who heads The Tie opined that the eToro had this experience because of the introduction of equity trading without commission:
“eToro has begun to have a more global focus on commission free equity trading as stock trading has begun to soar in the wake of coronavirus. eToro users have increasingly looked towards trading equities rather than cryptocurrencies over the last few months.”
As a matter of fact, these cryptocurrencies did better than Tezos in the second quarter. The difference is that Tezos’s performance in the second quarter is better than the first while the performance of the other cryptocurrencies is better in Q1. XRP grew by 46.01% in Q2 while BTC grew by 31.31%. Even ZEC did well in the second quarter by growing at the rate of 1.40%.
A million more followers for BTC, ETH and XRP
Be that as it may, the major cryptocurrencies still had new followers from eToro users. About 1 million new crypto enthusiasts emerged for BTC, ETH and XRP:
“Nearly 1 million new eToro accounts began following the Bitcoin, Ethereum, and XRP pages this month. This signals that while broadly there may be a bit more of an equity shift, existing and new eToro users most definitely continue to have an appetite for cryptocurrencies.”
The low growth recorded in Q2 may also be as a result of lower volatility of the crypto market even at the same time when the traditional market looks promising.