2024-03-29 07:42:02
Bitcoin Volume On Most Exchanges Plunges, Binance’s Hits ATH – MetaNewsr™
MetaNewsr™

Bitcoin Volume On Most Exchanges Plunges, Binance’s Hits ATH


Data shows the Bitcoin volume dominance of Binance has hit a new all-time high as activity on other exchanges has fallen recently.

Binance Accounts For 95% Of Bitcoin Volume Among Bitwise 10 Exchanges

According to the latest weekly report from Arcane Research, trading volume excluding Binance has declined 42% during the past week. The “daily trading volume” is an indicator that measures the total amount of Bitcoin that’s being transacted on the Bitwise 10 exchanges on any given day.

While the indicator only accounts for volumes on the Bitwise 10 exchanges, which certainly aren’t all the exchanges there are in the sector, the trend on these exchanges is still a reliable approximation for the real trend in the entire market.

When the value of the daily trading volume is high, it means the spot market is seeing a large number of coins being moved around right now. Such a trend suggests traders are active in the cryptocurrency currently.

Advertisement

On the other hand, low values suggest the trading activity among investors is low on spot exchanges at the moment. This kind of trend can be a sign that there isn’t too much interest in the asset currently.

Now, here is a chart that shows the trend in the 7-day average Bitcoin trading volume over the past year:

The value of the metric for Binance seems to have been quite high in recent days | Source: Arcane Research's Ahead of the Curve - February 7

In the above graph, the data for the trading volume on Binance and that on the other exchanges are shown separately. The reason behind that is since Binance removed trading fees on BTC pairs last year, the volume on the platform has exploded, which is in part because of wash trading occurring on the exchange that has been made viable because of the zero fees policy.

From the chart, it’s apparent that 7-day average trading volumes on both Binance and the rest of the Bitwise 10 exchanges have gone down recently, but the decrease has been much more dramatic on the latter platforms.

The total trading volume including Binance has gone down 7% in the past week, while when excluding the exchange, the decline has been a whopping 42%. Arcane Research mentions that the volume on Coinbase hit its lowest value since October 2020 just a few days ago.

Advertisement

The likely explanation behind activity on the market slumping this week is that the price of the cryptocurrency has been mostly consolidating sideways around the $23,000 mark. Investors usually find such price action unexciting, so they don’t tend to make too many trades during periods like this.

Because of the volumes plummeting in the other Bitwise 10 exchanges, Binance’s share of the total trading volume among them has risen to 95%, a new all-time high.

BTC Price

At the time of writing, Bitcoin is trading around $23,100, up 1% in the last week.

BTC continues to consolidate | Source: BTCUSD on TradingView

Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research



Source link

Advertisement
Exit mobile version