New TokenAnalyst Report: Number Of Active Users Is Falling In Large Exchanges

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.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Gabriel Machadohttps://bitcoinexchangeguide.com/
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

1 COMMENT

  1. It would be far more surprising if retail accounts and volume were increasing considering the sad state of most of the cryptosphere, wouldn't it?
    For anybody considering getting into crypto trading or who has been involved in it for a year or less it would be hard to find any positive factors at all to convince them to stick with crypto rather than traditional investment products. Practically every crypto outside of BTC is near or below their all-time lows with no real reason to believe anything will change. Add to that the fact that crypto trading is not only highly volatile by nature but also prone to blatant price manipulation and it's little wonder customers and volume are fleeing in droves. Add to this the growing perception among retail users that token prices are also being manipulated by both exchanges and token issuers in order to make a quick buck and it's amazing anyone invests at all.
    The next bull run, if it comes at all, can't come soon enough.
    But to be honest, this whole thing looks more and more like the dot.com bubble of the early 2000's. Internet commerce after that was deader than dogshit until Netflix, Google and Amazon made the internet a part of everyday life. I suspect that the only thing that can save crypto in its current form is Libra.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,478FansLike
2,795FollowersFollow
4,200FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Market Wrap: Bitcoin Never Going to Zero, Philanthropist Giving Away Money to Buy BTC

This week, the price of bitcoin moved, although it continues to trade in a tight range and is still hovering around $9,200 on low...

Bearish Catalysts for Bitcoin Price

This week, Bitcoin is ranging between $9,050 and $9,500. Currently, we are trading just above $9,200 after yesterday, Bitcoin’s price dropped $150 in seconds...

The Good and Bad of the Crypto Going Public

This week, big news came in the form of crypto businesses that are planning to go public either later this year or next year. Crypto...

US Secret Service Has Modernized Its Role in Tackling Financial Crimes in The Crypto Era

The role of the US Secret Service, whose purpose extends from protecting the US President Trump to protecting the US financial systems, has...

Bitcoin is in a ‘Consolidation Zone,' We’ll Move to $14,000 Once BTC Gets Above $10k: Mike Novogratz

Bitcoin is about system change, said Mike Novogratz, CEO of Galaxy Digital, in his latest interview with Barron’s Carleton English. While talking about the catalysts...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today