Binance Gains Market Share in Global Trading Tussle, Over 52% of Public Crypto Exchange Volume
Bitcoin (BTC) trading volumes are hitting new lows even when February was the first month since July 2018 registering gains for Bitcoin. According to a recent report released by Diar on March 4, trading volumes dropped 55% in January and February compared to the same period in 2018.
Last year, demand grew 45% compared to 2017. However, the last three quarters of 2018 found an even footing.
As per the report, major exchanges have hit new trading volume lows in dollar terms. For example, Coinbase has been severely affected by this bear market in terms of trading activity. Last month, Bitcoin traded volume fall under $1 billion.
Additionally, Coinbase’s market share against other major exchanges has also dropped from 24% in 2017 to 12% in 2018. This decline experienced by Coinbase might be one of the reasons why the exchange started to release new trading pairs. The platform has always been very careful with the assets it traded on its platform. Until the end of 2017, Coinbase only offered Bitcoin, Ethereum (ETH) and Litecoin (LTC) markets. Then it added Bitcoin Cash (BCH), Ethereum Classic (ETC) and many other digital assets such as Decentraland (MANA) or Loom Network (LOOM), among others.
Due to this decision, the exchange and platform have been highly criticized for adding support to assets that could have been added later. For example, Coinbase did not add XRP support until a few weeks ago.
There is a crypto exchange that seems to be increasing its market share. Binance, the largest digital currency exchange in terms of trading volume, has reached 52% of the market. The platform peaked back in September 2018. However, the next months it could reach a new high.
Nevertheless, Binance has also been affected by this bear market. The trading volume of the platform dropped to levels it had before December 2017, when the crypto market was experiencing a bull trend and when users were testing new platforms.
The market share of other exchanges has also continued to fall. Bitfinex has been the most affected. Indeed, the exchange has currently over 20% of the total market share when at the end of 2017 it owned more than 60% of it. Coinbase, Kraken, and Gemini operated stably during the last year.
The report released by Diar reads as follows:
“With Bitcoin’s volatility down 82% versus the start of 2018, it’s unlikely that the trading activity will gain much speed bringing back the sunshine exchanges basked in last year.”
Bitcoin reached an all-time high in December 2017. The digital asset was traded close to $20,000, the largest value ever for the digital asset. Since that moment, the price of the most popular cryptocurrency dropped down to $3,200 in December 2018, a correction of more than 80%. Other virtual currencies experienced larger drops.
At press time, Bitcoin can be traded for $3,778 and it has a market capitalization of $66.39 billion.