Changpeng Zhao, the CEO of Binance, has come out to say that the cryptocurrency market and the crypto exchange are comfortable enough in terms of the market. This statement was made during Zhao’s interview on CNBC Crypto Trader as he reassured those in the cryptocurrency world that in spite of the downward movement in the cryptocurrency market, things remain stable.
Business is Still Booming for Binance- Changpeng
Binance is the second largest crypto exchange in the world in terms of cryptocurrency traded according to CoinMarketCap with an average of 470 million dollars in volume.
In the past year, the crypto market has been tremendously devalued by up to 70 percent and occupies the 4th position on the list of the biggest corrections in its ten year history.
The CEO said that Binance’s trading volume has dropped by almost 90 percent since the beginning of the year due to the correction and the high stability of Bitcoin over the past three months. Zhao said that;
“Compared to January [of 2018], we are probably down 90 percent. So we only have one-tenth of the trading volume compared to what we had in January. But, compared to like a year or two years ago, we’re still trading at huge volumes. Business is still okay, we are still profitable, and we are still a very healthy business.”
Every day, there are increased Bitcoin users and trading volume. In the crypto exchange market, Binance is recording a reasonable volume and business is still healthy for the crypto giants. Zhao stated that Binance still records a good number of signups per day and the market was still looking healthy. He further noted that a look into Binance’s cold wallets and their amount of Bitcoin held would prove that the increase of Bitcoin deposits have been steady.
Actual Trading Volume of Crypto after Including OTC Trades
Several research firms including the TABB Group reported that the actual amount of crypto being traded over the counter (OTC) daily is at least two times larger than the crypto exchange market. A cryptocurrency researcher, Eric Wall, stated that at least 1 to 1.5 million Bitcoin is traded over the counter daily. He also said it’s strangely not visible on the Blockchain which records 100,000 transactions a day.
Changpeng also said that the volume traded on the OTC market is estimated on the average to be as large as the live traded volumes of exchanges. This statement fuels suspicions about the volume of the crypto market being at least twice its current recorded volume. As of November 2018, the daily trading volume of the crypto market is assessed to be in the $11.7 billion range.
If the suspicions that the OTC daily trading volume is as high as that of the crypto exchange market, then the real daily volume traded will be in the region of 23.4 billion dollars. Basically, that’s at least 50% of the whole cryptocurrency market not recorded on CoinMarketCap.
The CEO predicted that in the coming months, the catalyst to speed up the market would come around. He stated that sooner or later, the catalysts like Bakkt would trigger the market thereby increasing daily trading volume. Bakkt is a new company created by the same company that established the New York Stock Exchange, the biggest stock exchange in the world in terms of trading volume.
The new company is designed to enable consumers and institutions buy, sell, spend and store digital assets. It will also feature direct crypto to fiat conversions, a feature seldom found on crypto exchanges.