Data shows that Bitcoin trading volume increased last week as a result of Binance removing fees on its platform.
Bitcoin Trading Volume Recorded $11 Billion On July 8th On Binance Alone
According to the latest weekly report from Arcane Research, BTC volume on Binance accounts for 84% of the market total.
“Daily trading volume” is an indicator that measures the total amount of bitcoins that change hands on the entire network (or a particular exchange) in a day.
When the value of the metric increases, it means that the number of coins being transacted on the chain is still increasing. Such a trend may show that the network is becoming more active.
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On the other hand, declining volume could indicate that the BTC blockchain is losing activity at the moment. This could be a sign that investors are losing interest in crypto trading.
Now, here is a chart that shows the trend in bitcoin trading volume over the past year:
The value of the metric seems to have shown a spike in recent days | Source: Arcane Research's The Weekly Update - Week 27, 2022
As you can see in the above graph, the 7-day average daily bitcoin trading volume has seen an increase over the past week. However, the report states that this increase in the value of the indicator did not come from organic trading.
Binance removed fees from its platform for selected spot BTC pairs last week to celebrate its 5th anniversary. Many traders engage in large volume wash trading to take advantage of the removal to gain access to higher level fee rates (which are unlocked based on user volume).
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The value of the metric for Binance reached $11 billion on July 8, representing 84% of the total volume on the entire BTC network.
While Binance is the largest exchange in the market, its volume is still around 50-60% of the total market in general.
Other exchanges saw little activity during the past week, their averages even hitting 1-year lows. This means that organic trading is still pretty muted in the bitcoin market at the moment.
btc price
At the time of writing, the price of bitcoin is down 2% over the past seven days, around $20.9k. In the past month, the value of crypto has lost 4%.
The chart below shows the coin’s price trend over the past five days.
Looks like the value of the crypto has surged up over the last couple of days | Source: BTCUSD on TradingView
Featured image from Mariia Shalabaieva on Unsplash.com, charts from TradingView.com, Arcane Research