Even if you are not completely convinced that cryptocurrencies are here to stay, you have to take a look at some statistics and take notice. Forecasting a 50% increase in trading volume for 2019, a research study by Satis group points out that the volume of all cryptos traded will EXCEED the trading volume of all corporate debt THIS YEAR. Also, crypto volume is set to amount to 10% of all US equity trading. Now, that’s huge! Read on and realize a new market segment is here to stay.
(Bill Taylor/ Fintek Capital)
“…The dominance of bitcoin as a base pair for trading cryptocurrencies is…set to continue, per the report. Currently, bitcoin is the base pair for 33% of all the crypto volume traded across the globe with Tether coming second at 22% while Ethereum is third at 12%.
As for the fiat currencies, the United States dollar enjoys the biggest share of the market as a base pair at 48% while the Japanese yen is second at 27%. The Euro and the South Korean won enjoy single-digit market share at 9% and 7% respectively.
With the expected growth in the crypto trading volume, exchange trading fees will also naturally increase. From a figure of US$2.1 billion estimated to have been generated in exchange trading fees last year, the amount is expected to rise to more than US$3 billion in 2018. This is despite the bearish conditions which have persisted this year.
‘Assuming blended fees based on volume of the top 20 exchanges by size, we estimate over $2.1B in trading fees gathered last year across global exchanges. We estimate this number to grow to well over $3B in 2018,’ wrote Sherwin Dowlat, the lead researcher of the report.
Biggest Exchanges Making a Killing
Interestingly, the trading fees generated by crypto exchanges last year was almost on par with the US$2.2 billion generated by global equities and US$2.6 billion generated by retail brokers demonstrating how lucrative the cryptocurrency exchange business is. This growth in trading fees generated by cryptocurrency exchanges has been attributed to an increase in the number of institutional investors as well as growing retail adoption…”