There are fewer people sending their Bitcoin (BTC) to large exchanges recently, data from TokenAnalyst has shown. According to the data gathered by the London-based company, Bitfinex and Binance are seeing a sharp decline in the numbers of people depositing their crypto there.
While Bitfinex is seeing a two-year low figure, Binance’s levels have dropped to below the levels of early 2018. The traffic on the exchanges is also low, as it can be seen on SimilarWeb.
The founder of TokenAnalyst, Sid Shekar, affirmed that the interest of the retail investors in crypto is slowly declining once more. He disagrees with the safe-haven narrative, affirming that the number of buyers should be going up instead of down if they were actually used this way.
Trade volumes are also low at this point, so what does this mean? Are people abandoning BTC? Some data could point towards this hypothesis. Several exchanges are reported to be on the verge of bankruptcy because they can’t attract traders. Poloniex, for instance, removed 23 trading pairs that were not trading well recently.
Bitcoin Trading Is Not Dead, People Are Using OTC Desks
The main hypothesis of many experts now is that Bitcoin is not really being forgotten, but retail investors are not using it so much anymore. Several large investors are using over the counter (OTC) desks to trade. The onchain trading volume is still pretty high, it just seems that people are ditching exchanges.
Exchanges are trying to remain alive by offering interesting options for the so-called “power users” now. They know that these wealthy individuals can give them a lot of money, so this is the strategy instead of trying to get more low-volume retail users to join.