What are the yardsticks to measure exchange trading volume growth?
What are the yardsticks to measure exchange trading volume growth?
While on Twitter reading to be updated about recent development in the crypto space. I stumbled upon a post talking about exchange Q1 spot trading volume growth. I was expecting to see Binance at number 1 as usual but surprisingly they are in number 5 with less popular exchanges occupying number 1 to 4.
According to TokenInsight December 2023 publication about exchanges, Binance took the lead in both spot and derivative trading volume throughout the year but it seems the narrative is changing with Bitget, Bitmart and Bybit occupying the top 3 position based on spot trading growth in Q1 of 2024 according to the analysis
I would like to ask what you think is responsible for the trading volume growth of exchanges because all I could think of right now is perhaps the exchange user base or the number of trended token listed on the exchange
Only one real one. That is profit from fees and commissions.
Volume as we all know is easily made up, wash trading bots even are sold on Telegram if you make a deal with the exchange, you don’t pay fees because you are basically trading with yourself. You get the volume numbers up and exchange registers on major listings like CMC.
No exchange will tell you their real profit though, so tough luck unless you find out their tax payments