Coinbase Trading Drops 83% Since January, Offshore Cryptocurrency Exchanges Grow
Coinbase, the cryptocurrency exchange giant is somewhat struggling to maintain its client base. While the company is consolidating its place in the market, it is, at the same time, struggling to keep some of its clients during the current bear market. The San Francisco-based firm might be big, but it was a lot bigger in January, as Coinbase has 83% less trading volume today.
Diar, using data from CoinApi, reported that USD-denominated crypto exchanges have plummeted. However, in some other parts of the world, crypto-to-crypto exchanges have been stable or even raised in volume lately.
The company affirms that Coinbase has seen an 83% drop in volume, going from nearly $21 billion USD worth in trades to only $3.9 billion USD. Diar believes that this might have a relation with the decrease in USD-related trading. Bitstamp and Kraken, which also offer USD pairs, have also experienced a significant decline in trades since the beginning of the year.
Decentralized Exchanges Are Faring Better
The world’s largest crypto exchange, Binance, has also seem some decline in trades, especially in BTC, ETH, BCH and LTC markets, which have been available during the whole year. It went from $17.5 billion USD in February to $9.4 billion USD in June. However, it jumped 21% in the following month.
OKEx, considered the second largest exchanged in the world, has also attracted a big volume of investors from June to July. It went from $2.9 billion USD to $5.7 billion USD in trading volume in a single month, a record for the company and an increase of almost 97%.
It is fair to observe that neither Coinbase or Bitstamp support Tether, the stablecoin pegged to the USD, only real fiat currency, while both OKEx and Binance do support USDT. Tether has released hundreds of millions of new tokens recently and this might explain the surge in these companies.
Interestingly, both Binance and OKEx are eager to set up shop in Malta if pro-industry regulations actually pass this year. Known as “blockchain island”, Malta is making a huge effort to attract blockchain-based companies to its shores.
Binance, which had only traded cryptos so far, has also divulged a partnership with a Liechtenstein-based company to offer its first fiat trading pairs on the platform.