Crypto Outlet Diar’s Weekly Report Shows Drop in Trading Volumes for Major Exchanges
Diar publishes a weekly report on the most important highlights of the cryptocurrency world. The latest issue, published on November 26th, discusses mining, regulatory measures, and even the recent support of Blockchain Capital for Securitize. However, one topic of interest that seems to affect the whole market is the trading volume on major exchanges, which has taken a major dive.
The information used by Diar includes data from Binance, Okex, Huobi, Bitfinex, Kraken, Poloniex, Bittrex, and HitBTC. These details show that the recorded volumes of 60% of the exchanges are below what it was back in January 2018. Furthermore, over 20% have seen a drop that is so substantial that they are seeing less than 90% of what they saw in their trading volumes in the January bull run.
In the report, Diar comments,
“Despite cryptocurrency prices having plunged 80-95% from the start of the year, traders aren't taking a punt on the bargain.” It adds “Order books are now filled to the brim on the sell side with November, to date, seeing an acceleration in depreciating volumes.”
An overall volume increase was seen by 410 tokens, but the ones with over a 100% increase dropped down to 91 from its former 102 in just October and November. Increase in volume was even scarcer for tokens through the rest of the month.
The liquidity data showed on Diar’s report varies greatly between the exchanges, making it hard to draw certain conclusions. For instance, Poloniex shows that the year has brought down the volumes of every token from January to now. At Bittrex, only three listed tokens have the same results.
Diar elaborates, “The outliers, by reported volume at least, are OKEx and Huobi, with Binance having a fairly equal share of trading volumes across the percentage bands. Just under half of Binance's listing have decreased volumes compared to the start of the year.” They added, “Over 75% of the tokens that have been added to exchange this year have seen their volumes in complete decline October versus November.”
When CEO Changpeng Zhao of Binance was interviewed this month, he commented that his platform was “not worried” about the trade volumes and their downward spiral. He also noted that the volumes are high above what they were “two or three years ago,” keeping them profitable, despite adding up to less than 10% of the volume in January this year.