Bitcoin (BTC) Trading Volume Dominance Is Declining On Binance Crypto Exchange
BTC Trading Declines
Diar released an analytics report on cryptocurrencies this week. The report discussed the evolving role of bitcoin and how its supporting exchanges have impacted the cryptocurrency market. The data shows that one of the largest exchanges, Binance, may find its dominance over the market to be at risk.
The report reads,
“Bitcoin trading volumes have taken a hit across major exchanges over the course of 2018.” “The research team identified that Binance accounts for 32 percent of the market and most of the BTC/USDT trading volume. Binance is the only platform that actively trades BTC. Bitfinex is another, but its market has seen a decline in BTC trading as well.”
The exchanges that have seen the most significant losses, though, are America-based platforms Bittrex and Polniex. The only outlier is OkEX, in which BTC has had a 6-fold increase since the start of the year.
Even though the short- and long-term picture for bitcoin is not positive, according to the report, traders may be focusing on altcoins. Forbes reported that A.T. Kearney, a multinational management consulting firm, sees otherwise. According to A.T. Kearney, altcoins have “lost their luster” because of aversion tactics by retail investors.
There is also a practice by investors to liquidate their altcoin position due to the SEC’s position on ICO-funded tokens. For example, two ICOs in the United States, AirFox and Paragon, have experienced a crackdown by the SEC. Kearney predicts,
“Our prediction is that Bitcoin will regain its dominance is supported by the ever-growing complexity among altcoins, most recently demonstrated by the ‘has war’ that occurred in the Bitcoin Cash ecosystem.”