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Binance, Coinbase see massive drop in Trading Volume in 2019: Report




Binance, Coinbase see massive drop in Trading Volume in new year: Report
Source: Pixabay

The turn of the year has not been kind to cryptocurrency exchanges as their trading volumes have declined to depths not seen since 2017, indicated a study conducted by the Cryptocurrency and Blockchain-centric research group Diar.

Cryptocurrency exchanges’ trading volume could be set to hit a plateau, as the volatility of the collective crypto-market has been decreasing since the beginning of 2019. After closing 2018 with significant recorded volatility, owing to the collective market cap dropping from over $825 billion in January to under $103 billion, in December, 2019 has shown early signs of being relatively stable.

In the course of the study, Diar tracked the trading volume of four of the biggest exchanges in the world, namely, Binance, Coinbase, Gemini and OKEx. Binance, the largest crypto-exchange in the world saw a 40 percent decrease in its BTC/USD trading market to just above $3 billion, which was the exchange’s worst period since it began operations in 2017. This drop was after the final three months of 2018 saw a small but consistent increase in the trading volume.

Source: Diar

The American exchange, Coinbase has seen its trading volume tank consistently since 2018 started, owing to the bear market. In January, 2018, the exchange boasted a BTC/USD trading volume of $8.2 billion which soon fell to under $2 billion by December. The trading volume fell further to $1 billion in January, 2019, its worst point since 2017.

Source: Diar

Gemini Crypto Exchange, spearheaded by Cameron and Tyler Winklevoss also saw declining trading volume throughout 2018, closing with a BTC/USD trading volume of around $600 million. The exchange began 2019 with a trading volume of under $300 million.

Source: Diar

OKEx, was the only cryptocurrency exchange that did not follow the same trend as the above three exchanges, with its trading volume increasing from September 2018 till the end of the year.

The Hong-Kong based exchange had a September 2018 trading volume of $1.9 billion which rose to around $5.5 billion by the close of the year. Following its three-month consistent increase, the exchange’s trading volume dropped in January 2019 to under $4 billion.

Source: Diar

Cryptocurrency proponents might be worried looking at the dropping trading volumes, but the people behind these exchanges are not. Back in November 2018, Changpeng Zhao, the CEO of Binance said that he was not too concerned with the dropping volumes as it is an inevitable aftereffect of the ongoing bearish market. He further added that Binance’s November trading volume is a tenth of the January 2018 trading volume but was significantly higher than that of previous years.

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


SEC delays VanEck Bitcoin ETF decision days after delaying Bitwise proposed rule change





SEC delays VanEck Bitcoin ETF decision days after delaying the Bitwise proposed rule change
Source: Unsplash

The Securities and Commission Exchange [SEC] has yet again delayed another Bitcoin ETF. This time around, the commission has decided to delay the VanEck Soldix Bitcoin ETF, one of the most awaited exchange-traded funds in the cryptocurrency community.

In the document released today, the exchange has asked for more comments on the proposed rule change and has also asked for further information on queries related to the exchange-traded fund. The commission stated that it has received 25 comments on the proposed rule change so far.  It stated,

“On January 30, 2019, Cboe BZX Exchange, Inc. […] filed with the Securities and Exchange Commission, […] a proposed rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust […] The proposed rule change was published for comment in the Federal Register on February 20, 2019.”

It further stated

“On March 29, 2019, pursuant to Section 19(b)(2) of the Act, the commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”

Notably, the main concerns of the commission continue to be market manipulation and the measure taken by the platform to protect its investors. The commission is currently seeking comments on 14 queries pertaining to the VanEck Bitcoin ETF.

This includes the views of the ‘commenters’ on whether the exchange has entered “into a surveillance-sharing agreement with a regulated market of significant size related to bitcoin?”, the relationship between the Bitcoin futures markets and the Bitcoin spot market, with the focus being price formation, the relationship between the Bitcoin futures market and the proposed Bitcoin ETF, and the commenters’ views “of the Exchange’s assertions that bitcoin is arguably less susceptible to manipulation than other commodities that underlie ETPs”.

Gabor Gurbacs, Director of Digital Assets Strategy with VanEck said on Twitter,

“The VanEck SolidX #Bitcoin #ETF decision has been postponed by the SEC. We continue the hard work towards better-regulated, safer and more liquid digital assets markets. Bitcoin is too big to ignore. Vires in numeris!”

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