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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.


ErisX goes all hands on deck to launch a Bitcoin Futures market




ErisX goes all-hands on deck to launch a Bitcoin Futures market
Source: Unsplash

ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.

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