Bitcoin trading has become really popular these days. The trading of bitcoins depends significantly on the way in which we can speculate on movements in the price of Bitcoins. It is a process which allows customers to trade Bitcoins for other assets. In fact, Bitcoin trading has become essential for Bitcoin owners and traders.
However, in the trading of Bitcoins, trading volume is an essential factor. In fact, it is an indicator which indicates the general interest in Bitcoins. A recent report from Arcane Research states that Bitcoin trading volume is at near one-year highs in recent times. If you wish to know more about the increased trade volume, keep reading this article.
Trading volume is an essential factor in cryptocurrency trading. It is an indicator which measures the total number of Bitcoins that have moved in a day, on the blockchain. A higher value of the trading volume is a positive indicator in Bitcoin trading. This is because a higher value suggests that a higher amount of coins are traded on the network. A higher value, therefore, is an indicator of an increasingly active blockchain.
On the contrary, a low value of trading volume suggests that the blockchain is not highly active at the moment. In fact, a lower reading also seems to suggest that the common interest in Bitcoin is low.
The Recent High Bitcoin Trading Volume
A recent report published by Arcane Research shows that the Bitcoin trading volume has increased in the last few weeks. The report also deals with the Binance share of the total volume. From the report, it appears that the crypto exchange’s contribution to the current high levels has increased simultaneously with the increase in the value of the indicator.
There is a reason behind this. Three weeks ago when the surge was noticed, the trading fee for Binance was decreased for a few Bitcoin trading pairs. In fact, traders aimed to cash out this opportunity. Therefore, they started “wash trading”, aiming to unlock higher rate tiers. This inorganic activity, therefore, falsely inflated the volume. However, the volumes have not dropped for three weeks.
Thus, it might signify real organic activities on the platform. This is indeed a positive sign. It seems to suggest that real traders are using the lesser fee on Binance for trading, thereby increasing the Bitcoin trading volume.
This is all about Bitcoin trading volume that is on a surge in recent times.