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Binance, Coinbase record highest YTD exchange traffic; real exchanges making their mark?




Binance and Coinbase record highest YTD exchange traffic; real exchanges making their mark?
Source: Unsplash

Binance and Coinbase’s success and popularity, arguably the two most important cryptocurrency exchanges in the world, can be gauged using a metric that measures the amount of people they draw in. In the face of scams and questions of ‘real’ trading volume, such metrics are welcome an as recent estimates go, their “real” effect is working.

Kevin Rooke, a cryptocurrency analyst, charted out the site-visits to both Binance and Coinbase and attested that their figures for May 2019 were higher than any other cryptocurrency exchange this year. With Bitcoin and the larger cryptocurrency community soaring, traffic would be pushed, but to see that these exchanges took the lion’s share of the same points to a movement towards exchanges with “real” volume.

Binance, the Maltese exchange, took the top spot with over 1.37 million visits in a single day, with the month-on-month metric up by 16 percent in May 2019. Similarly, Coinbase saw 1.14 million visits a day, with a higher relative increase of 23 percent from April 2019. Rooke further added that no other cryptocurrency exchange saw over 500K visits a day.

Rooke stated,

Source: Twitter

From the chart, it can be seen that as prices began to float up in March, prior to the massive April ascendance, site-visits responded. Coinbase’s daily average traffic was well under 500K in mid-March and then rose over 900K as Bitcoin climbed over $5,000 in early April.

Prior to the ascendance, Binance saw traffic of over 900K and the same rose over 1.2 million as the price soared in April. Despite a gulf in traffic difference between the two exchanges in March, the same has narrowed as the price rose in May.

The importance of web-traffic at the current juncture of the cryptocurrency industry cannot be overstated, considering the number of reports that have addressed exchange trading volume. Bitwise sent tremors in the cryptocurrency industry first in March and then in May, with their back to back exchange reports which stated that over 95 percent of cryptocurrency exchanges fake volume.

Binance and Coinbase were two among the ten exchanges which reported “real volume,” and hence, were “real exchanges.” Other reports by The Tie group also vouched for these exchange’s volume credibility.

With reported volume a clear no-no in terms of discerning the true performance of an exchange, other crypto data aggregators decided to employ the parameter of website traffic. CoinGecko, a coin and exchanges data aggregator, launched “Trust Score,” which will rank exchanges based on web traffic data, order book data as well as reported volume.

CoinGecko will use web traffic data from Similar Web as it is “much more difficult to fake web traffic statistics aggregated by 3rd party services.”

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Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.


Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report




Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
Source: Unsplash

Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.

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