TokenAnalyst, a London-based crypto research firm, has come up with data that shows that a decrease has been seen in the number of people who were sending Bitcoin to significant exchanges.
The data revealed that the number of people sending BTC to Bitfinex and Binance– world’s largest cryptocurrency exchanges had seen a decline in the volume. Bitfinex’s numbers have dropped to the lowest in the past 2 years whereas Binance has never seen such a drop since 2018.
The traffic on both websites is at an all-time low as compared to the past 4 months. The decline in the numbers is because of the lack of interest in the crypto industry generally. Sid Shekhar, who co-founded TokenAnalyst, gave these reasons as to why the volume was low.
Just Binance, Bitfinex, and other large exchanges are not suffering, since August, the majority of crypto exchanges in South Korea are on the edge of bankruptcy due to low transaction volume.
Even though there is low trading volume on the exchanges, the price of Bitcoin is still rallying since April, and the fact is that Bitcoin trading is difficult to monitor.
Another reason can be that there was an increase in the peer-to-peer transactions services and trades that took place through OTC desks. To make up for the falling transaction volume, exchanges are focusing on their attention on individuals who have been associated with them for a long time.
A growing number of exchanges are present there in the market ever since cryptocurrencies have gained popularity amongst the users. For a trading platform to be successful it has to offer several products and services to gain customer loyalty.
