Binance is sick. Aside from the irregularity problems which it must settle at the court level, the first cryptocurrency exchange in the world also accuses unappealing statistics. In fact, the volume of bitcoin trading on the crypto platform has fallen by more than 50% over the past three weeks. Her rival Coinbase could benefit from such an unfortunate situation.
In short :
- Binance’s average spot bitcoin volume is down 57% since the start of September
- A 48% decline in bitcoin volume was seen across all crypto exchanges
- At the same time, Coinbase shows a 9% increase in BTC trading volume on its cryptocurrency exchange platform.
Binance, we exchange fewer and fewer bitcoins there
According to Changpeng Zhao in his big reveal, Binance is doing well. The Proof-of-Reserves (PoR) report recently published by the most popular crypto exchange highlighted the existence of 588,000 BTC in his wallets. And several altcoins as well.
“ K33 Research Highlights Changes in Cryptocurrency Trading Volumes! Binance Spot BTC Trading Volume 7-Day Average Down 57% since the beginning of September. During this time, Coinbase sees 9% increase. Beth Lunde of K33 Research points out the departures of market makers, linked to DOJ and SEC issues, as responsible for the decline in Binance volume. Binance US suffers a staggering 99% drop from $5 billion to $40 million in weekly trading volume this year. A difficult time for cryptocurrency exchanges. »
By analyzing the facts, CoinDesk also highlighted:
- a very significant drop in the average volume of BTC spot on the CZ crypto exchange, 57% since 1er september ;
- an increase in bitcoin transaction volumes for its American competitor, Coinbase.
At this level, the crypto media did not hesitate to describe this situation as “ dramatic decline “.
Why such a regression at Binance? Explanations from Vetle Lunde, principal analyst at K33 Research:
“ THE DOJ and SEC lawsuits against Binance may have dissuaded market makers from trading on Binance, which partly explains the decline. Some market makers have likely fled to other exchanges, but it is almost certain that Binance’s woes are having a negative impact on market volumes. »
Binance and Binance US, between regulatory challenges and erroneous strategies
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