In a story gone all wrong for cryptocurrency exchanges in the United States, Coinbase has lost as much as 83% of its trading since January. The lucky winners of Coinbase loss were made outside of the USA in the exchanges of Malta and others
Research by business firm, Bernsteinn said that Coinbase though expected to gain considerable market share in the US, has its own set of battles. It is experiencing a slow market as the firm which operates from San Francisco has reported consumer activity is at an all time low. The down trend could trigger similar down trends across exchanges opine experts.
According to other research resources such as CoinApi that cryptocurrencies have been trading very low in 2018. It also found that many of the large cryptocurrency-to-cryptocurrency exchanges are headquarters in different parts of the world.
Coinbase is the knowledgably the most well-known cryptocurrency that is operating the US. But in the past eight months the exchange has been witnessing continuous plunge by over 83% from the January highs. In the meanwhile, in July, Coinbase was found to be processing $3.9 billion in terms of trades worthiness as well as achieving new highs are $21 billion.
Apparently this decline is not unique to Coinbase or other exchanges in the country. Two other exchanges – Bitstamp as well as Kraken, which are dependent on the USD trading pairs have also grappled with the slow prices. But fortunately for these smaller exchanges there was not much loss in comparison to Coinbase.
Binance, the Malta-based exchange is also the exchange with most number of order-book cryptocurrency exchanges. These centers outside of the USA have been able to start out with proactive government, willing to experiment and independently reach the decision to offer full support to virtual currency systems.
Thus Binance as an exchange has been steadily investing in the structures necessary for such trade. The coins that this exchange offers are BTC, LTC, ETH and BCH. This is in sharp contrast to Coinbase which offered only 4 until a few months ago in 2018. in February, bitcoin trading fell from $17.5 billion to $9.4 billion by June.
Another popular overseas exchange is OKEx and is also regarded as the second largest of the cryptocurrency exchanges. It has been reporting surge in trading volumes in the latest weeks moving to $5.7 billion in July from $2.8 billion in June. Perhaps OKE is the only exchange which has been reporting significant month-over-month increase by 97 percent in monthly recorded OKEx.
This is in contrast to the plunge that exchanges in Coinbase and Bitstamp expressed between eh month of June and July.
More importantly, it is seen that Coinbase, like Bitstamp is unable to support USD-related Tether ( USDT), while both of the overseas units – Binance and OKEx offers trading in this digital asset.
In the recent weeks, it was found that Tether was issuing millions of dollars of tokens and has been the subject of much controversial discussions.