Record Trading Volumes in 2018
2018 has gone down in the books as a banner year for cryptocurrency exchanges, with trading volumes reaching unprecedented heights. According to a report by research firm Diar, the frenzy of trading activity was anything but dull, as both trade numbers and volumes surged on major platforms. However, don’t get too comfortable; predictions for 2019 indicate a slight dip in spot market figures, regardless of the ever-growing variety of traded cryptocurrencies.
Rise and Shine for Major Exchanges
The numbers, as they say, tell all. Coinbase, a heavyweight in the U.S. crypto exchange arena, boasted a 21% increase in combined trade volume compared to 2017. Meanwhile, Kraken flexed its muscles with a staggering 192% hike in trade volume, leaving it almost breathless, and Bitfinex didn’t lag too far behind with a respectable 50% boost. It seems the crypto party wasn’t just a one-man show!
Trade Numbers are No Joke
Coinbase also reported a 14.1% uptick in the number of trades conducted, climbing from 82.7 million in 2017 to 94.4 million in 2018. That’s a lot of digital coins still changing hands!
Bitcoin Mining Revenue – The Ups and Downs
Let’s shift gears and take a peek under the hood of Bitcoin (BTC) mining. In terms of revenue, miners raked in an astounding $5.8 billion in 2018, with January alone accounting for $1.2 billion of that mountain of cash. But don’t let that glitter mislead you – by December, those revenues had plummeted a staggering 83%, leaving miners with a mere $210 million. Talk about a rollercoaster ride!
Hash Power Dynamics Shift
At the start of 2018, dominant mining pools led by Bitmain controlled 53% of Bitcoin’s network hash power. Fast forward to 2019, and that figure has dwindled to a mere 39%. This shift towards smaller mining groups is crucial for the network’s security, reassuring us that major attacks are less likely. As Diar stated, “Unknown miners closed December having solved a whopping 22% of the total blocks, up from just 6% at the start of the year.” Who knew the little guys could pack such a punch?
The Institutional Influence
While individual traders were surfing the wave of digital currencies, institutional investors were not silent observers. Diar found that these big-money players have been gravitating towards more liquid over-the-counter (OTC) markets. In fact, Coinbase reported a 20% increase in BTC trade volume during OTC hours, while Grayscale’s Bitcoin Investment Trust experienced a 35% drop in volumes compared to the year before. Guess who’s winning the popularity contest?
Looking Ahead
As we march into 2019, the landscape of cryptocurrency exchanges and mining is evolving. With new players entering the market and existing platforms adapting to changing trends, it’ll be interesting to witness how these dynamics play out. Buckle up, folks; the world of crypto is still very much a thriving adventure!
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