Increase in the price of cryptocurrency creates more market for cryptocurrency exchanges and the increase of traders. The determinant of this is based on the experience of cryptocurrency exchanges a year ago while the digital currency was at its peak and their experience since the beginning of this year to the past week.
Decrease In Market for Cryptocurrency Exchange
The decline of the value of cryptocurrency had led to a decrease in the number of clients of cryptocurrency exchange host daily in comparison to a year ago when there was a massive boom in the crypto space.
Bitcoin, the top value cryptocurrency reached its highest peak of about $20,000 sometime in December last year but has experienced decline since the beginning of the year, over 70%. During the good times, there was an increase in the rate of daily investors and traders. However, most of those that invested during the period are yet to profit on their investment. The downward trend has placed a lot of speculations about it which the community still hope rises before the end of 2018.
When Bloomberg sought the opinion of Brian Armstrong the CEO of Coinbase, one of the world largest cryptocurrency exchange, he stated at the Bloomberg Players Technology Summit in San Francisco that his exchange added 50,000 users daily at the peak of cryptocurrency last year.
The revelation of Brian Armstrong shows a significant number on a daily basis. However, the present number of users added daily though isn’t accurately know but can’t be said to be as much as it was last year. So also he stated that despite the reversal in the market his exchange still has 1,000 workforces with one-third of the number being females. And the exchange has traded about $150 billion worth of cryptocurrency in the past one year.
The decline in the number of cryptocurrency traders has also reduced in past one week due to the delay in the approval of bitcoin ETF by SEC till September 30. This has made many cryptocurrency traders cash in on their cryptocurrency because of the uncertainty that trails it. The market has shed an about $50 billion worth of cryptocurrency of recent.
Brian Armstrong also informed Bloomberg in the interview that cryptocurrency has experienced its bubbles because it is still in its early phase. And it will take some time before it can be used as means of purchase on the street of America, as only 10% of cryptocurrency is used for trading presently, other 90% is held by speculative traders.