The year 2018 has been pretty brutal for all cryptocurrencies. One would expect this to affect exchanges in a negative manner. It now appears the opposite is coming true. The recent Bitcoin Cash debacle, for example, resulted in increasing volume for most exchanges. Australia’s Independent Reserve confirms their platform activity benefits from volatile situations like those.
Independent Reserve Benefits From Turmoil
When cryptocurrency prices fluctuate a lot, exchanges tend to note more overall trading volume. This is especially true for pairs linked to stablecoins. However, when currencies get “forked”, the same situation applies. Bitcoin Cash underwent a major protocol upgrade about a week ago. The end result is how two chains are effectively competing with one another, instead of one.
This “split” between an ABC camp and SV supporters benefits exchanges. Independent Reserve CEO Adrian Prezelozny confirms this ‘war’ has increased overall trading volume. As all cryptocurrency prices remain subdued, this Bitcoin Cash kerfuffle reignited a trading frenzy. So much even that overall volume increased six-fold in quick succession.
Volatility in the cryptocurrency world works both ways. Lower prices attract more users willing to invest. Higher prices trigger a sense of FOMO and people want to ride the wave to the top. An internal debate among community members of a specific currency also creates volatility. Independent Reserve is just one of the many exchanges benefiting from such short-term bursts of trading volume. While the company is small, they see more and more interest from older investors.
Keeping the Faith in Crypto Alive
For Independent Reserve, branching out into different projects has proven critical. An exchange is no longer just a place to buy, sell, and trade crypto assets. Instead, the Australian exchange’s team has to branch out whenever possible to attract more attention. While this firm has the backing of Mike Tilley, it remains crucial to keep the momentum going at all times.
Some of its recent developments include launching a blockchain hub and co-working space. While cryptocurrency gains traction in Australia, numerous options remain unexplored. A new service to pay bills with crypto assets will be launching in the country later this year. That is another example of how Bitcoin has matured in this region. Positive and open-minded regulatory measures allow crypto assets to thrive in Australia.
All of this indicates the future of cryptocurrency and blockchain looks bright. While incidents such as the one affecting Bitcoin Cash are rare, they also have a positive side for exchanges. That is an important takeaway, as it is an angle traders often tend to overlook. There is always more to a story than what’s just visible on the surface. Cryptocurrency is no different in that regard. It too is subject to the proverbial butterfly effect.
Why do you think trade volume is spiking? Let us know in the comments below.
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