The year 2018 has been bearish for all cryptocurrencies. This has caused Bitcoin and altcoins to lose a lot of value. Additionally, the overall trading volume has decreased from over $40 billion a day to barely $13 billion. A new report claims this is a temporary setback as things will pick up steam in 2019.
The Cryptocurrency Trading Volume Issue
Over the past nine months, interest in trading cryptocurrencies has diminished a bit. Falling prices tend to result in a lower overall trading performance. Given these low prices, some analysts predict things will turn around for the industry in the near future. A report by Satis Group shows that turnaround may be nearer than you think. More specifically, the group claims the volume will note a “significant increase” throughout 2019.
For the cryptocurrency industry, a spike in trading volume is more than welcome. Enforcing an increase in trades is easier said than done. The report envisions a 50% growth between now and September 2019. After that period, further growth will occur at a rate of 9% per annum. This is a very positive outlook, especially as digital currency trading will surpass U.S. Corporate Debt trading before this year is over.
Making this vision come true will be rather challenging. Positive regulatory developments pave the way for more widespread cryptocurrency use and adoption. Lower prices create interesting entry points for speculators and traders alike. However, there are still some key issues which need to be addressed first and foremost. Trading cryptocurrencies and storing them remain problematic aspects for investors.
Applying the KISS Principle
A boost in overall trading volume can occur by keeping things simple. As such, the KISS principle will become even more important in the cryptocurrency industry. There is a steep learning curve novice investors and traders need to take into account. Several dozen exchanges exist, and there are thousands of digital currencies to trade.
Catering to the needs of every individual is impossible in this industry. Those service providers maintaining the KISS approach have a good chance of benefiting from the projected increase in trading volume. Now is a good time to distribute overall market liquidity in a more even manner. The Satis Group report confirms a few operators control the majority of trading volume liquidity. Distributing the load evenly will benefit the industry as a whole.
How the cryptocurrency scene will evolve remains difficult to predict. There appears to be a growing interest from institutional traders and investors. Bridging the gap between traditional finance and Bitcoin remains an ongoing process. An increase in trading volume seems to indicate the lines between these industries are blurring in the process. On paper, that is a very promising sign of what the future may bring.
Do you expect cryptocurrency trading volume to jump 50 percent over the next year? Let us know in the comments below.
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