For crypto exchanges like Binance growth in 2020 dependent on select markets

The restricted performance of the crypto market in the second quarter of 2020, did not come as a surprise to its users. The consolidation phase in June was the main reason for this blow followed by the user sentiment. However, prominent exchanges believed that the upcoming quarter and the second half of 2020 could provide rapid growth for the crypto market.

As the price of the largest cryptocurrency, Bitcoin breaks away from the kangaroo market, the consolidation phase might note an end. At press time Bitcoin has a trading value of $11,158 and a 24-hour trading volume of $7.1 billion.

As volatility snuck back in, Alternative.me highlighted a ‘Greedy’ market, at press time, which was better than ‘Extreme Greed’ that was indicated yesterday. As the sentiment in the market stabilizes, it was important to identify prominent exchanges and key sources of users based on countries.

According to the data collected by TokenInsight, webpage popularity represented professional users’ attitudes towards the exchange. Thus, if an exchange had a higher number of independent visitors [UV] it meant that professional users were relatively recognized by the exchange.

As per the chart above, Binance, Coinbase Pro, OKEx, ZB, and Kraken have obtained 77% of independent visitors from key exchanges. This may be indicative of a high user base and a higher proportion of professional users.

As the prominent exchanges were known, they could be linked with the user source analysis, which suggested the value of orders of quarterly visitors to an exchange. TokenInsight’s data suggested that the United States, Ukraine, Russia, the United Kingdom, and China were the key markets for most prominent exchanges.

As per the data highlighted by the above chart, Coinbase Pro and OKEx had a market share of 12.493 million and 8.186 million orders, respectively. Coinbase Pro’s primary user source was in the United States, followed by the United Kingdom. Whereas,  OKEx saw its major traffic from Ukraine, followed by China.

As per the analysis, no other single country or region could acquire 2 million orders of quarterly visitors to the exchange. Apart from the above mentioned five countries, the remaining single geographic market shares were below 5%. Thus, the main driver for the rapid growth in the second half of 2020 could be expected by users from these five countries on the key exchanges.

Even though the market sentiment may bring about small-scale positive changes, other problems like false transactions, capital security, and limited incremental users remain unsolved and would have to be resolved for crypto to usher in real market dynamics.

 

writen by Namrata Shukla

https://eng.ambcrypto.com/crypto-exchanges-growth-in-2020-dependent-on-select-markets/

Related articles

John McAfee Announces a Magical Competition For Crypto Traders

John McAfee Announces a Magical Competition For Crypto Traders                                 John McAfee, an eccentric crypto fan announced a unique competition for crypto traders and enthusiasts. The competition is named World Trade Competition and will be held in three stages – weekly competition, quarterfinals, and Word Trade Finals. The competition is organized by collaboration […]

Learn More

Why Bitcoin is a popular means of payment in Africa

Why Bitcoin is a popular means of payment in Africa Originally designed as a means of payment, many use Bitcoin only as an object of speculation. Not so in some countries in Africa.Chainalysis has now observed traffic and trading patterns related to crypto transactions. It turned out that Bitcoin in particular is used as a […]

Learn More

This Week Gamers Invested 1 Million in Virtual Blockchain Real Estate

This Week Gamers Invested $1 Million in Virtual Blockchain Real Estate This week alone, gamers, virtual reality enthusiasts, and the cryptocurrency community have invested nearly a million dollars worth of real world currencies into virtual real estate generated and maintained by blockchains. The three largest blockchain generated virtual world games, The Sandbox, Decentraland, and Cryptovoxels, […]

Learn More

Leave a Reply

Your email address will not be published. Required fields are marked *