Data indicates that, despite a recent decline in activity on rival exchanges, Binance now dominates the Bitcoin volume market at a new all-time high.
Trading volume outside of Binance fell 42% last week, according to Arcane Research’s most recent weekly report. The entire volume of Bitcoin traded on the Bitwise 10 exchanges each day is represented by an indicator called “daily trading volume.”
The movement on these exchanges is nevertheless a trustworthy approximation for the true trend in the overall market, even if the indicator only takes into account volumes on the Bitwise 10 exchanges, which are by no means all the exchanges in the sector.
When the daily trading volume is strong, there are a lot of coins being traded around on the spot market right now. Such a pattern shows that bitcoin traders are currently active.
Low levels, on the other hand, imply that investor trading activity is currently inactive on spot marketplaces. This type of pattern may indicate that there isn’t currently much interest in the asset.
Here is a graph showing the trend in the 7-day average trading volume for bitcoin over the previous 12 months:
The statistics for the trading volume on Binance and those on the other exchanges are displayed individually in the graph above. The reason for this is that since Binance eliminated trading costs on BTC pairings last year, the platform’s traffic has skyrocketed, in part due to wash trading that has become feasible thanks to the exchange’s zero fees policy.
The data shows that the 7-day average trading volumes have decreased recently on both Binance and the other Bitwise 10 exchanges, although the decline has been far more pronounced on the later platforms.
The overall trading volume, including Binance, has decreased by 7% over the last week, but the fall is staggeringly higher when the exchange is excluded (42%). According to Arcane Research, only a few days ago, Coinbase volume fell to its lowest level since October 2020.
The fact that the price of the cryptocurrency has mostly been stabilizing sideways around the $23,000 level is the most likely cause of the market’s declining activity this week. Investors often don’t place a lot of transactions at times like this because they find the market activity boring.
Binance’s share of the overall trading volume among the Bitwise 10 exchanges has increased to 95%, a new record high, as a result of the volumes falling on the other exchanges.
Bitcoin is now priced at roughly $23,100, up 1% over the past week.