Cryptocurrency exchanges experienced low trading volumes last month, the lowest they recorded since 2017. This is according to an analysis published by crypto and blockchain research firm Diar yesterday, February 4.
Crypto exchanges record lower trading volumes
According to the report, crypto exchanges have recorded even lower trading volumes, setting new lows for the first time since 2017. The analysis company pointed out that January 2019 was the worst period for the leading crypto exchange Binance. The BTC/USD market on the exchange has plunged by more than 40 percent compared to the volume recorded in December 2018.
Furthermore, the report added that leading crypto exchange in the US, Coinbase also saw its BTC/USD market dip to a lowpoint last recorded in May 2017. The BTC/USD market on Coinbase went down by 1 billion USD in January.
Hong Kong-based crypto exchange OKEx was reporting three months growth prior to January. Its trading volume dipped below the 4 billion USD mark, from a high of 5.5 billion USD recorded in December 2018.
However, the low trading volume doesn’t bother some crypto exchanges. In November 2018, Binance CEO Changpeng Zhao claimed that he wasn’t worried about the low trade volumes caused by the bear market. Despite the slump, Zhao maintained that Binance was trading far above volumes from two to three years ago.
Furthermore, in December 2018, the Blockchain Transparency Institute (BTI) published a report claiming that most of the top 25 BTC trading pairs listed on CoinMarketCap had inflated false volumes. The report added that they was clear evidence of wash trading on crypto exchanges Huobi, OKEx, and HitBTC. It also revealed that it discovered a large amount of wash trading – mostly with altcoin options such as Monero (XMR), Dash, Bitcoin Gold and ZCash (ZEC).
Only last month, Diar also published a report indicating that the on-chain transaction value of Ethereum reached an all-time high in December 2018. The transaction value reached 115 million after stabilizing between 16–17 million transactions in October and November.