Crypto Exchange Reacts With Trading Fees as Bitcoin Trading Volume Declines in March: Report

Report – Crypto Exchange Reacts With Trading Fees When Bitcoin Trading Volume Declines

Crypto Exchange Reacts With Trading Fees as Bitcoin Trading Volume Declines in March: Report

A new study report by a digital currency trading tool provider, TradeBlock notes that Bitcoin trading volume in March hits a two year low – and trading fees were the potential way to sustain their platform.

Following Bitcoin bear market after the historic rise of nearing $20000 in December 2017, exchanges reacted with high trading fees to afloat their status in a sinking crypto market. No doubt, Bitcoin has lost over 70 percent and now slightly moving upward since the start of April 2019 – trading fees of the exchanges are also moving up and down accordingly.

Concerning how exchanges protect their position in the crypto market, Tradeblock states that

“In 2018 and early 2019, prices contracted and trading volumes declined significantly from their peak. On average, exchanges raised fees on both the maker and taker sides in 2018 and 2019. An increase in trading fees is in line with expectations that exchanges are looking to protect revenues, amidst continually dampened trading volumes.”

However, it isn’t surprising to see exchanges peaking up their fees – at the prolonged bear market, trading fees will remain the potential source of income for these platforms. Additionally, regulatory crackdown across various countries and especially US Securities and Exchange Commission have put a question mark on the usage of Digital currency.

However, the report also notes that fee structure in the year 2015 and 2016 was quite lesser because Bitcoin value was just started soaring. Later in the year 2017, it was quite stable and then peaking high when the market sees a bearish condition.

“Exchanges lowered fees in 2015 and 2016 while volumes slowly began increasing.

In 2017, exchanges, on average, held fee schedules unchanged as trading activity rose to all-time highs. However, as volumes have continued to decline, exchanges began raising fees in 2018 and 2019.”

Since the price of Bitcoin went upside of the graph earlier this week, it’s interesting to look at how these exchanges will perform. Such bull alert lets exchanges increase their coin listing – consequently, TradeBlock noted Coinbase’s decision of listing XRP and Stellar Lumens over the last few months. Pointing out the recent rise in the value of Bitcoin, reports states that;

“An increase in trading fees is in line with expectations that exchanges are looking to protect revenues, amidst continually dampened trading volumes,”

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Crypto Exchange Reacts With Trading Fees as Bitcoin Trading Volume Declines in March: Report
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Crypto Exchange Reacts With Trading Fees as Bitcoin Trading Volume Declines in March: Report
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A new study report by a digital currency trading tool provider, TradeBlock notes that Bitcoin trading volume in March hits a two year low – and trading fees were the potential way to sustain their platform.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Reach out to her at [email protected]