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Less and Less People Send Bitcoin to Major Crypto Exchanges

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Contrary to what you might think, in recent months the amount of people sending Bitcoin to the main exchanges has decreased, according to data provided by crypto data tracker TokenAnalyst.

According to this information, Bitfinex is presenting the lowest figures in two years in terms of the number of addresses that send tokens to its trading platform. On the other hand, Binance figures dropped to early 2018 similar levels.

TokenAnalyst co-founder, Sid Shekhar, said that these data indicate a lack of general retail interest in cryptocurrencies. Also, he added that the number of new users/buyers should be increasing if the idea of “Bitcoin as safe haven in times of recession” is applied, which is not happening.

In the same vein, Blockchain.com reported that the volume of Bitcoin trade exchange in US dollars has been declining since its peak in 2017, and is currently at its lowest point since May. On the other hand, tracker SimilarWeb noted that web traffic to Bitfinex and Binance is at a four-month low.

In order to increase user loyalty and the amount of fees they can charge, several exchanges, including Binance and Bitfinex, expanded the availability of margin trading, allowing traders to borrow funds to speculate. Binance began testing its future products this month, after allowing traders to lend their funds to others in August.

On the other hand, the crisis in user growth is pushing some of the 200-plus crypto exchanges towards consolidation.

For Ian Taylor, head of advisory services at Galaxy Digital Holdings Ltd., the crypto exchange landscape is very fragmented. As he said in a phone interview, too many exchange platforms have been launched in the last 12 months, to the point that it would not be strange that, in the future, some kind of consolidation takes place in order to boost the user growth.

Source Link: https://www.bloomberg.com/news/articles/2019-09-05/fewer-people-are-sending-bitcoin-to-largest-crypto-exchanges

About the author

Jhon Fernando Maldonado

Jhon Fernando Maldonado

Internet marketing and cripto currency journalist / writer. He has a degree in Linguistics from Universidad de Los Andes, in Venezuela. Passionate about digital marketing, with knowledge in topics related to technology and web positioning.

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