Like every month, CryptoCompare released its Exchange Review report which aims to capture the key developments within the cryptocurrency exchange market. But this time the report was much awaited as the report captured the month of March 2019 which was a stepping month. And like always the report handsome startling revelations.
Total Spot Volumes increased by 47.5% as the majority of the volumes came from Malta
Exchanges are a critical part of the crypto ecosystem as they drive the trades and determine the prices of any coin. Hence any analysis around them gives out a somewhat accurate picture as to how the crypto industry is shaping up. This is where the CryptoCompare report on exchanges becomes really important as it provides a perspective into various aspects of trading and investing.
The recent report, that covered the month of March 2019, gives a great insight into the built up that led to the rise of crypto markets in the first week of April 2019. One standout point was that “BTC trading into USDT totaled 8.9 million BTC in March, an increase of 43% since the previous month. In March, it represented 81.7% of total BTC volume (traded into fiat or stablecoin), while last month the pair represented 70%. “ which signified that USDT still dominated the most popular stablecoin and a lot of investors managed volatility using USDT. This rise here also meant that a lot of investors were switching their holdings between stablecoin and BTC and would inch towards Bitcoin as they found opportunities.
The report also covered some other points which gave a glimpse of how things were shaping up. These included
- Malta-registered exchanges represented the majority (56%) of trading volume, followed by those legally registered in Hong Kong and South Korea which were at 54% and 21 %
- Exchanges that charge taker fees represented 84% of total exchange volume in March, while those that implement trans-fee mining (TFM) represented 14%.
- OKEx traded the highest average daily derivatives volume in March at a figure of USD 1.5 billion which included both futures and swaps. This was followed by Bitflyer Lighting at 1.14 billion USD and BitMEX at 645 million
- Regulated bitcoin derivatives product volumes are still dominated by CME. This was followed by Grayscale’s GBTC product traded on the OTC (over the counter) markets, and CBOE’s bitcoin futures.
- March also saw a sharp increase in volume from crypto to crypto exchanges. Crypto to crypto exchanges saw a rise 70% in trading volumes while those offered fiat pairs decreased 8%
One other point that clearly showed investors were returning to cryptos was that s, total exchange web traffic increased 32% in March, in conjunction with a total spot volume increase of 47.5%.
These figures give a fair bit of indication that why the prices of cryptocurrencies shot up in early April. If these trends continue on can expect the prices of most coin go further up.
Will we see a further rise in crypto prices based on the exchange activity that was put forward by crypto compare? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.