An analysis recently done by crypto analytics firm Diar found that the trading volumes of major crypto exchanges have reached record low levels – the levels never seen since May 2017.
It’s no secret by now that the volumes of cryptocurrency exchanges have been slumping due to the extraordinarily long bear phase. However, one can’t imagine the extent to which they have slumped since the beginning of bear market in November. But now an analysis published yesterday by crypto analytics firm Diar is giving insights on that front too, and the picture emerging seems to have worsened. According to the analysis of Diar the volumes of major cryptocurrency exchanges have now reached the lowest point since May 2017.
Yep – since the beginning of 2019 cryptocurrency exchanges around the globe have registered record low trading volumes. Binance, for example, has seen a reduction of 40% in its BTC-USD market. Same applies to US based Coinbase too, which has experienced lows never seen before May 2017 at daily trading volume of $1 billion only.
Hong Kong based OKEx, which was continuing to be the outlier in this race of daily trading volumes until last month, has also experienced a decline in its volumes since the beginning of 2019. Losing its 3-months long growth-streak the exchange has seen its daily trading volumes touching $ 4 billion mark from the high of $5.5 billion a month ago.
Notably, Binance CEO Changpeng Zhao had said in November last year that though their volumes have slipped to a tenth of what they experienced in January, they’re still healthy enough because they’re much more than the volumes of 2-3 years ago.
Besides Diar similar reports have also been published in the recent days by other crypto analytics firms and institutions. For instance, a report published by Blockchain Transparency Institute (BTI) in December claimed that majority of top 25 trading pairs listed on CoinMarketCap are based upon “inflated” volumes. Clear evidence of activities like Wash Trading have been found against Huobi and HitBTC, though to a lesser degree than OKEx. BTI had also alleged that Bithumb also indulges in a large amount of wash trading activities with Monero, Bitcoin Gold and Zcash.
However, it’s not that all is going wrong with cryptocurrencies. For instance, another report recently published by Diar had stated that on-chain transaction value of Ethereum hit an all time high of 115 million in 2018 despite the decline in its prices.