Cryptocurrency has seen a rough start to 2018. All markets have lost a lot of value and the overall trading volume is on the decline. That latter situation is seemingly changing fairly quickly. More money pouring into cryptocurrency markets can have a positive impact on the individual prices.
Cryptocurrency Trading Volume Rises
It has become apparent the overall cryptocurrency volume is rising again. After several tough weeks, the money is coming back to cryptocurrency as of right now. All major exchanges have seen an influx of fiat currency in the past ten days. Although this is just a snapshot of the overall trend, it is positive news for the industry regardless.
The volume is coming back… pic.twitter.com/vzQnFwbgcL
— Ran Neuner (@cryptomanran) July 5, 2018
Binance has seen its volume more than double. This platform has never seen any major liquidity issues. In late June, the platform generated $659 million worth of volume on a single day. Ten days later, that volume increased to $1.52 billion. A massive increase which comes at the most opportune time.
Other exchanges have fared equally well. Huobi, Bitfinex, and Upbit have all seen significant volume increases. In South Korea, Bithumb continues to dominate the markets. This is despite the exchange getting hacked less than two weeks ago. Such an incident doesn’t shake speculators’ confidence in cryptocurrency all that much these days.
Not the Most Viable Metric
Despite the overall cryptocurrency trading volume rising, it only tells part of the story. There have been numerous allegations regarding market manipulation. Those allegations include fake trading volume and heavy use of trading bots. As such, these increases in overall volume always need to be put into their proper perspective.
Furthermore, the cryptocurrency trading volume is not the most viable metric. Cryptocurrencies thrive due to technical developments and widespread adoption. Nothing has changed in this regard, hence the volume increase has a different origin. Which factor is driving this sudden increase remains largely unclear.
Not all exchanges have seen an increase in trading volume either. ZB.com is the only exchange on this list losing nearly half of its regular volume. That is surprising as no specific trading markets have been removed. Nor has the company been affected by any hack, theft, or any other incident.
What do you think is behind this increased trading volume for cryptocurrencies? Let us know in the comments below.
Images courtesy of Shutterstock and Twitter/@cryptomanran.