Insane Growth Recorded by Crypto Trading Platforms This Week
Red or green, everyone is in.
The ongoing price action in the market, whether it is in the up direction or down, is bringing a lot of activity in the cryptocurrency market. Interestingly, more activity was seen during the down sessions than during the uptrend, which means people are increasingly taking advantage of this buy the dip opportunity.
As we reported, already never seen before volumes can be seen on cryptocurrency exchanges, both spot, and derivatives. Much like the price of the digital asset, the volumes are breaking new all-time highs every other day.
— skew (@skewdotcom) January 12, 2021
The crypto trading and lending platform BlockFi also reported heightened interest in smart money. “BlockFi clients bought 2X more BTC yesterday than the previous record. Over 100M in trading volume,” noted the company CEO Zac Prince about the day, the price of Bitcoin went down to nearly $30,000, and ETH dropped back to $910.
This big sell-off, which was the largest since March 2020, also saw a record $220 million crypto trading volume on PayPal.
During last week, while Bitcoin was the most traded asset on BlockFi, its clients were more bullish on Ethereum.
The same story is for retail trading platform eToro, which opened 380,000 new accounts in the last 11 days. The crypto trading volume on the platform is also 25 times higher than the same period last year.
“Insane growth. This is just the beginning of the influx of traders we will see in crypto in 2021,” commented trader Scott Melker on the numbers.
To further boost this, eToro is even offering a $500 reward to its US investors this month for opening crypto-trading accounts worth at least $5k.
The company, which has 17 million registered users, mainly in Europe and Asia, only started offering Bitcoin trading in the US in 2018. Last week, as BTC made a new ATH at $42,000, eToro halted the ability to open new leveraged crypto accounts and later asked existing customers to cover the full value of their position — a move that affected about 2% of its active users.
“We did this in response to the volatility in crypto markets, and we believe it was the most prudent action to take,” eToro spokeswoman Amy Butler said. “Trading with leverage can be highly dangerous in the current volatile crypto-market conditions.”
While things have calmed down since the nearly 28% pullback, amidst the increased interest and Grayscale opening its products to new investors, the new inflow will be coming soon.