Although a fairly stable amount of Bitcoin spot trades over the past week, data suggests that Binance has increased its market share.
According to Arcane Research’s most recent weekly analysis, Bitcoin trading volume has remained stable at roughly $10 billion. “Daily trading volume” is a metric that measures the total number of Bitcoin traded on the Bitwise 10 exchanges on a particular day.
The Bitwise 10 exchanges’ volumes are used exclusively in the metric since they are widely considered to be the most accurate. Even though they don’t represent every platform in the industry, the general trend in trading volume can be inferred from their behaviour.
If the indicator value is high, then a lot of coins are being traded on the spot market right now. A rising pattern like this may indicate increased trading activity.
In contrast, low numbers signal that trading activity on the Bitcoin spot market is light at the moment. Such a pattern may suggest that buyers and sellers aren’t particularly enthusiastic about the asset right now.
The accompanying chart shows that the daily trading volume of Bitcoin has been significantly higher than the weekly average of roughly $10 billion during the past week. The majority of this activity is clearly concentrated on the bitcoin trading platform Binance.
For the past week, the indicator’s value on the spot market excluding Binance has averaged just $390 million, the lowest it has been since 7 January 2023.
In other words, in the most recent period, Binance was responsible for 96 percent of the overall trading volume on the Bitwise 10 exchanges. The cause for this increase is the decline in trading activity at major cryptocurrency exchanges like Coinbase, Kraken, and Bitstamp during this time.
Bitcoin’s trading volume typically decreases while the price is moving sideways because investors don’t like boring consolidating markets. It’s not surprising that trading volumes are rather low across the board given Bitcoin’s weak performance recently.
Also Read: Binance Believes ChatGPT Will Promote Cryptocurrency Usage
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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