Cryptocurrency trading volume to hike by 50% in 2019: Study
A new study conducted by Satis Group has found that cryptocurrency trading volume is bound to register a growth of 50%. The study was conducted by Satis group on exchanges, OTC providers, consumer custody and institutional custody solutions. It focused on four key areas of financial trading and indicated that the most uncertainty lies in the areas of trading and custody and concentrated on both fiat and cryptocurrency and comparatively analyzed each landscape.
Exchange trading volumes were first analyzed by the study. Centralized exchanges accounted for most of the trading volume and only 0.2% of the volume were held by decentralized exchanges. "Though most exchanges, as well as the bulk of trading and liquidity, are centralized there has been much investment and development into Decentralized Exchanges (DEXs). ). While there are a number of decentralized exchanges actively trading and others in various stages of development, they have not yet reached parity with traditional exchanges. Although DEX volume remains a small fraction of overall crypto market volume, over the next 5-10 years we expect decentralized exchanges to become increasingly competitive with centralized exchanges as user interfaces/experience improve and liquidity increases," according to the study.
The study also indicated that top 20 exchanges owed to 75% of the crypto trading volume. Binance held about 14% of the trading volume and according to the data was the exchange with the largest trade volume followed by OKEx with 12%. Coinbase only accounted for 2% of the total crypto trade volume. The study also predicted that the crypto trading volume will overtake the US corporate debt trading volume this year.
Crypto exchange trading fee will hike by 50%, mentioned the study. Considering the trade volume of the top 20 exchanges the trading fee will rise from an estimated $2.1 billion to $3 billion in 2018. This trading fee increase is due to increased institutional participation, surging retail adoption and trading support from larger exchanges.
The study also seems to have found a solution to institutional custody problems. It suggests the “crypto native” solutions launched by Anchor Labs. These solutions ensure that the security of the asset does not rest with just one person but has the participation of many networks. Safety of these assets is guaranteed by verifying the purpose of the organization through time-tested security designs.
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