August 29, 2022
NEW DELHI – A report has revealed that more than half of all Bitcoin, the world’s largest cryptocurrency, daily trading volumes are reportedly fake.
Amid global economic turmoil it dipped below $20,000 on Saturday.
Fake or non-economic on 157 crypto exchanges
A Forbes analysis has reported that of 157 crypto exchanges and trading platforms, more than half (51 per cent) of all Bitcoin daily trading volumes are reportedly fake or non-economic.
“We estimate the global daily bitcoin volume for the industry was $128 billion on June 14. That is 51 percent less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources,” the report mentioned.
Industry lacks genuine method of calculation
The report mentioned that Bitcoin represents 40 per cent of the $1 trillion global crypto market but it lacks a genuine method of calculating daily volume. It further says, “even among the industry’s most reputable research firms,” do not have a proper method.
“For instance, CoinMarketCap puts the latest 24-hour trading of bitcoin at $32 billion, CoinGecko at $27 billion, Nomics at $57 billion and Messari at $5 billion,” the report revealed.
Mismatch on trading platforms
In terms of how much Bitcoin activity takes place, 21 crypto exchanges generate $1 billion or more in daily trading activity, while the next 33 exchanges had volume between $200 million and $999 million.
Binance the Market leader
Binance is the leader with a 27 per cent market share, followed by FTX. Chicago-based CME Group is the market leader in bitcoin futures trading.
Downfall after stabilisation in the market
For a few weeks, Bitcoin, the world’s largest cryptocurrency, remained stable. Again on Saturday, It plunged once again below $20,000 after Federal Reserve Chair Jerome Powell’s keynote address.
Bitcoin prices had stabilised around the $23,000 to $24,000 level after plunging below $20,000 in June.