The magnificent surge in prices of cryptocurrencies over the weekend not only pushed Bitcoin and other key altcoins past their key resistance level, but it also led to an all-time high trading volume in the crypto space. The combined trading volume of the crypto space peaked $98 billion, making it an all-time high record.
Bitcoin was leading the charge with $30 billion in trading volumes, which is quite phenomenal given the fact that just a month ago, this was the combined trading volume of the whole crypto market. Bitcoin was followed by Ethereum with a trading volume of $12 billion and the rest of the altcoins accounted for the remaining trading volume of around $56 billion.
The biggest contributor to the surge in Bitcoin trading volume is Bitmax, which also has Future trading contracts which are mostly settled in Bitcoin on the exchange. Bitmax was responsible for $8.7 billion worth of Bitcoin trades. Another big contributor is not-so-popular Negocie Coins exchange serving in Brazil and accounted for $2.5 billion of the total Bitcoin trading volumes.
Trading Volumes Might Be Fake But The Sentiments Are Really Bullish
Fake trading volumes on crypto exchanges have become a harsh reality that we live with, and even the current surge might include a significant portion of these fake trading volumes. However, analysts have a very interesting take on the recent surge who suggest that trading volumes have been faked in the past too, but a surge in those volumes points towards the increased interest and demand of the community towards Bitcoin.
The recent surge in trading volumes of Bitcoin across unknown exchanges is a sign of worldwide Bitcoin adoption and its popularity in recent years. Apart from unknown exchanges, another factor that has contributed towards the surge in Bitcoin volume is the use of USDT, as most of the exchanges do not allow for direct fiat buying/selling, so people often buy Tether first as it is equivalent to the US dollar.
The use of Tether might be actually helping in cementing the position of the US dollar than undervaluing it. The biggest users of USDT for buying crypto resides in China as the government in the country had banned the use of crypto in its economy, thus the native currency cannot be used for crypto trading, which forces the crypto trader to make use of Tether over the counter which helps in bypassing the bank.
Tether Has Become The Fiat Of Decentralized World
Tether being the stable coin and having liquidity against the US dollar has become the choice of currency for crypto trading. This is the main reason Tether has the most number of trading pairs on any exchange across the world. It has become the digital fiat for crypto trading since it is easy to liquidate and use even in places where the use of crypto is banned, and most of the exchanges have every crypto asset pegged against it for trading.
Bitcoin Is Growing Steadily Towards The Large Scale World Adoption and Become The Global Money
The recent surge in volumes of Bitcoin and crypto space reaching an all-time high with most of the trading volume coming from unknown exchanges are both good, and bad. Bad because unknown and unregulated exchanges mostly account for fake trading volumes, and good because the rise in trading volumes of unknown exchanges suggest that Bitcoin is being used and adopted in the remote corners of the world.
From South Africa to Brazil, China and Arabia, Europe and America, crypto markets are springing up making Bitcoin and crypto a global phenomenon. No other technology or invention has been able to touch so many lives in such a short period of time.
Bitcoin is not just another trend which people are clinging to due to its popularity, but the main reason for such wide adoption is the number of real-world problems that the digital asset has solved over the years. Bitcoin was invented with the moto to help the people become financially self-sufficient, especially the developing nation where banking services are rare for majority and hyperinflation is making their national fiat useless.
Bitcoin is already helping nations like Venezuela, Zimbambe, Kenya and many other developing nations to reconstruct their disastrous financial state which has been brought upon them by misgovernance and the greed of the rich and powerful. Bitcoin is not popular just for its token price, but mostly because it promotes a sense of equality and freedom.