Binance FUD Results in Decrease in Bitcoin Trading Volume, Other Exchanges Report 52% Increase

Bitcoin Trading Volume on Binance Drops amid FUD, Other Exchanges See 52% Increase Data shows that Bitcoin trading volume on Binance has recently declined as FUD about the exchange has spread, while activity has picked up on other platforms.

Excluding Binance, Spot Market Sees 52% Increase in Bitcoin Trading Volume Last Week According to data from this week’s Arcane Research report, the 7-day average volume is now around $757 million on exchanges other than Binance. The relevant metric here is the “daily trading volume,” which measures the total amount of Bitcoin being transacted on the Bitwise 10 exchanges on any given day.

The Bitwise 10 exchanges are not all of the exchanges in the sector, but data from them is considered the most reliable of the current platforms, and the trend of their volumes can also be taken as a good approximation for the entire spot market.

When the daily trading volume has a high value, it means a significant amount of activity is happening in spot exchanges right now, suggesting that traders are active in the market. On the other hand, low values suggest BTC is not observing much trading activity at the moment.

Here is a chart showing the trend in the 7-day average Bitcoin daily trading volume over the past year:

Appears like Binance nonetheless occupies a particularly massive share of the entire volumes | Supply: Arcane Research's Ahead of the Curve - December 20

As you can see in the graph, the data for the 7-day average Bitcoin trading volumes on Binance and those on the other exchanges are shown separately. The reason for this is that following Binance’s fee removal, a significant amount of wash trading began to occur on the platform as high-volume trading strategies became viable. As a result, the crypto exchange was able to get an unusually large share of the total volumes for itself.

Just one week ago, 91.5% of the spot volume was dominated by Binance. However, since then the exchange has seen a decline in its activity as controversies such as the Proof-of-Reserves situation have seeded FUD in the minds of investors. Now, the dominance of the exchange is around 88.7%.

While the volume on Binance has gone down, the rest of the market has seen an uptick of 52%, as the 7-day average value of the metric is now $757 million on these exchanges (up from $498 million last week), the highest since Nov. 19.

BTC Price At the time of writing, Bitcoin’s price floats around $16,800, down 6% in the past week.