Trading activity on the San Francisco-based cryptocurrency exchange Coinbase has reportedly dropped 83% since hitting all-time highs this past January.
According to a recent report published by Diar, a market research group that cites data from CoinApi, the total Coinbase trading volume for the month of January was more than $20 billion. This number has since tumbled, due in large part to the ongoing crypto bear market, hitting as low as $3.4 billion in July.
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This trend is in stark contrast to the trading volumes found on Binance, the world’s most popular crypto exchange, which actually peaked in February and is down only around 30% from all-time highs. Notably, Binance saw a major uptick in trading activity between June and July, indicating a growing interest in the exchange despite the continued value loss across the market.
After reviewing the trends across all major trading platforms, Dior concludes that exchanges outside of the United States are beginning to gain market share as they do not have to combat as strict of regulations.
Traded volumes on Coinbase, Bitstamp and Kraken have seen steep declines. Meanwhile, token exchanges outside the US, that have lax regulator scrutiny, are now seeing an increase in traded volume with the majors.
Given the current trends, the outcome of the latest Coinbase listing of Ethereum Classic (ETC) begins to make more sense, as the cryptocurrency failed to receive any significant bump in price since landing on the platform.
Binance, on the other hand, has been quite steady and continues to be the gold standard for listing-based price hikes. Additionally, Binance’s exchange token, Binance Coin (BNB), has been the best performing cryptocurrency of 2018. So much so, that 90% of Binance employees now receive their salaries in BNB.
BNB is currently ranked 16th in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, and 1st in the AltDex Exchange Token Index (ALTEXC), a benchmark index for the industry’s leading exchange tokens.
Given that trading activity is so highly correlated to price action, look for the U.S.-based exchanges to reverse the trend once the crypto market breaks out of this now 8-month long bear market.
More: Dior Market Report
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.