Trading Volume Of Major Cryptocurrency Exchanges Has Risen 23% Due To The Impact Of FTX
Affected by the crash of FTX, the trading volume of major crypto exchanges in November increased 23% to $705 billion. Binance is the exchange with the highest growth rate with 30% this month.
According to Bloomberg, crypto data firm Kaiko indicated in a news release on December 5 that the trading volume of major crypto exchanges in November increased 23% to $705 billion, due to volatility related to FTX, growth was largely driven by Binance.
Among them, Binance’s trading activity increased by 30% in November, when FTX’s liquidity crisis ultimately led to its bankruptcy and devastated the crypto market. Although it has been denied many times, Binance is also considered as one of the triggers that made FTX disappear from the market.
As mentioned in an earlier Coincu News article, the catalyst for the collapse was the announcement by Binance CEO Changpeng Zhao (CZ) on November 6 that Binance is selling FTT held by them because FTX’s native token is too risky. This caused FTT to undergo a strong flush that caused FTX liquidity to dry up quickly in just 2 days.
Binance has recently increased its reserve operations and strengthened user trust with operational transparency. Therefore, the collapse of FTX could be a good opportunity for major exchanges such as Binance, Coinbase and Kraken to rise to gain market share and grow.
“Binance may benefit, despite not having an official headquarters, because it has projected an image of strength through the crisis with the best liquidity of any centralized exchange,”According to the newsletter
However, it is also difficult to operate on smaller exchanges due to reduced trading volume from users and institutions that have become wary of these exchanges.
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