What does the high trading volume of cryptocurrency mean (decrease in trading volume in the cryptocurrency circle)?
The high trading volume of cryptocurrency means a lot. Bitcoin has experienced a
The high trading volume of cryptocurrency means a lot. Bitcoin has experienced a significant increase in the past year, rising from $60,000 on September 1st to around $20,000 now. Although the prices of both currencies are relatively high, the trading volume is not large because there is a high demand for digital currencies in the market. So, is the trading volume one of the biggest indicators for those who want to invest in digital assets?
The answer is definitely not! With the continuous development and application of blockchain technology, more and more people are paying attention to this field. Many users are now more concerned with the development and price trend of Bitcoin. However, the price of Bitcoin is not stable or without significant market volatility. So, the current trading situation is more like a “speculation.”
If you want to know the price trend of Bitcoin, you can first look at the performance of BTC in the past month: BTC has risen by up to 800% (represented by the blue line in the chart), while other mainstream tokens have obvious room for decline. Of course, these coins have also experienced a certain degree of decline. Additionally, according to CoinMarketCap data, among the top ten cryptocurrencies in terms of market capitalization, five have experienced significant increases recently, with EOS and XRP being the most outstanding performers, with a total increase of over 50% in the past week.
So, what does “high trading volume of cryptocurrency” really mean?
According to bitinfocharts data, the number of coins on Binance is 74,000, followed by Ethereum with 24,200 coins. The number of active addresses on Ethereum is approximately 130,000, and Binance ranks third with 33,000 active addresses, accounting for over 60% of global exchange users. In addition, the daily number of new wallet addresses on the Bitcoin network has also reached 150,000.
In other words, the Bitcoin network generates a total of approximately $10 billion in new funds every day, which is equivalent to the peak level of Bitcoin during the bull market last year.
Therefore, although the high transaction fees of Bitcoin make investors willing to buy more digital currencies, Bitcoin has not grown as expected. In fact, this situation is not entirely possible to happen, and in 2018, most Bitcoin holders seemed to think that their Bitcoin was more valuable than gold. However, even after the beginning of 2019, Bitcoin still experienced a large amount of selling. When Bitcoin reaches a new all-time high, some investors will sell part of their Bitcoin to make a profit, while some speculators are unwilling to do so.
On the other hand, due to Bitcoin’s scarcity and liquidity characteristics, it often becomes a means of payment, exchange medium, or commodity in the market. However, this also means that Bitcoin cannot meet people’s needs, making Bitcoin worthless. The popularity of Bitcoin is mainly because it can be used as a store of value. As mentioned above, every Bitcoin transaction generates a large amount of income (buying Bitcoin and selling).
Decrease in trading volume in the cryptocurrency circle
According to TokenGazer data analysis, by 17:00 on August 1st, BTC price was $1crypto, with a total market value of $19.31. Market activity in the cryptocurrency market has rebounded slightly. Currently, the 24-hour trading volume of Bitcoin is $1,821.6MM (-1.8%), a decrease of 18.98% compared to the same period last week. In terms of mining power, the BTC mining difficulty is 20.06T, a decrease of 12.88% compared to the previous week. Among ERC20 tokens, BNB has the largest 24-hour trading volume at $92.8M (+13.84%), while USDC has the smallest 24-hour trading volume at $21.0MM (+5.91%). From 10:00 to 11:00 UTC+8, the BTC/USD trading pair on Bitfinex and Poloniex experienced a significant net outflow. 1. Reduction in BTC block rewards: From block height 630,000 to 3,000,000, the number of new addresses on this chain has decreased by nearly 80%. 2. Decrease in ETH block rate: 1.9%, an increase of 1% compared to yesterday.
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