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.

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Gabriel Machado
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. 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 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.


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