Crypto Exchanges FTX & Kraken Report Extremely High Demand
ATH prices, ATH traffic, and volume making crypto exchanges unusable.
The crypto market is enjoying a wild bull run, with the total market capitalization surging to nearly $1.4 trillion, up from just under the $830 million high set in Jan. 2018.
This huge uptrend has been the result of Bitcoin’s market cap reaching almost $900 million. Additionally, the market cap of altcoins excluding BTC is now worth more than half a billion dollars while the DeFi sector is ready to hit $70 billion, as per CoinGecko.
Just like the prices, the trading volume and traffic on cryptocurrency exchanges have skyrocketed.
“ATH prices. ATH traffic” noted Changpeng “CZ” Zhao, CEO of leading spot exchange Binance. “The system volume just now was 60%+ more than our previous ATH at peak,” he added.
However, the heightened activity also made several exchanges unusable during the high market volatility period. CZ tweeted on Tuesday,
“Fact is, the systems will experience some issues here and there as we scale up exponentially. Nothing we can't fix quickly, but not going to be a perfect smooth ride.”
Much like Binance, Kraken also reported connecting issues because of growing interest in the market.
“We are experiencing another all-time high surge in interest. Working rapidly to fix identified issues. Trading via API and the Kraken Pro app are not affected.”
Joining the list of exchanges seeing great demand, derivatives platform FTX also reported record sign-ups.
“More people applied for verification yesterday on FTX than we had total accounts the first time we hit 1 billion in 24H trading volume,” said the exchange late on Monday.
The market has been seeing record volume, traffic, sign-ups, and resultant shut-down on exchanges for the last few months on a daily basis now amidst the surging prices. US-based Coinbase, however, didn’t report any such issues this time, for a change, along with Bitfinex, which worked smoothly.
The cryptocurrency market experienced a period of high volatility following the announcement of Tesla buying $1.5 billion Bitcoin. This pushed the prices of BTC past $48,000.
According to a Bloomberg interview with billionaire Mike Novogratz, Galaxy Digital founder, and chief executive officer, Bitcoin could very well more than double to $100,000 by the end of the year as “every company in America do the same thing.”
“It doesn’t have to be a lot. It’s the messaging that matters, you’re seeing the herd here, and it’s coming.”