Total Crypto Volume Reaches a Record $83 Billion, Highest Level of Fake Volumes Ever

As Bitcoin crosses the $5k mark and the entire market turns green adding $30 billion in the process, the trading volume on cryptocurrency exchanges makes a record as well.

At the time of writing, the 24-hours trading volume of the entire market has reached $83 billion, as per the data provided by Coinmarketcap.

If we take a look at the trading volume managed by BTC in the past 24-hours as per Coinmarketcap, it has been more than $22.2 billion. While on December 17, when BTC hit 19,140, the data reveals the trading volume was at $13.3 billion which is just above half of the current volume when the price is at $5k.

This is the record trading volume registered by Bitcoin exchanges and cryptocurrency exchanges. As per Messari’s Real 10 24-hours volume, BTC trading volume is just $1.4 billion that makes 20.8 billion volume to be fake.

Step Towards Real Volume

Fake trading volume in the crypto space has been a long-established issue which further became apparent and came out in the open with the latest report of the Bitwise Asset Management and the Blockchain Transparency Institute.

According to their report, the fake volume varies between 80 percent to as high as 95 percent which certainly puts a big hurdle in cryptocurrencies path to mainstream acceptance and adoption.

Talking about the fake volume, the research for the same included 81 exchanges for trade sizes, buy/sell patterns, spread differences, and statistical analysis, on the basis of which Teddy Fusaro, COO, and Head of Research Matt Hougan said,

“Reported volume adds to roughly $6 billion/day, but under the hood the exchanges that report the highest volumes are unrecognizable. The vast majority of this reported volume is fake and/or non-economic wash trading.”

Meanwhile, the real market for Bitcoin is much smaller as per this report that stands at just about $273 million a day. Additionally, this figure involves only 10 of the 81 exchanges that they analyzed.

These exchanges include Coinbase, Gemini, Kraken, Bitstamp, Binance, itBit, Bitfinex, bitflyer, Poloniex, and Bittrex. Except for Binance, these exchanges either have a BitLicense with New York state regulators or registered as a Money Service Business with the Finance Crimes Enforcement Network.

Following these concerns raised by Bitwise, crypto data specialist Messari took a step to tackle this issue by adding two critical metrics to its onchainfx dashboard “Real 10 exchange volume” and “Liquid Cap” market cap alternative.

Now, users want industry leader in crypto data aggregation Coinmarketcap (CMC) to report true data as well. In response, Carylyne Chan, the Global Head of Marketing stated,

“We want to state that our philosophy is to provide as much information as possible to our users, so that they can form their own conclusions and interpretations – and not introduce our own bias into that mix.”

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