Volume On Binance May Have Dried Up, But Its CEO Has Remained Undeterred
It goes without saying that 2018’s bear market hasn’t been kind to crypto exchanges, with volumes drying up and traders exiting this nascent space en-masse. Data gathered by Ran NeuNer’s CNBC Africa-sponsored Crypto Trader has revealed that from September to October alone, volumes tallied on Binance, OkEX, Huobi, and Bitfinex have declined by 32%, 47%, 47%, and 48% respectively.
Although these statistics paint a dismal outlook for exchanges, which make up the backbone of this industry, Changpeng “CZ” Zhao, CEO of Binance, has seemingly remained unfazed, cutting out some time to speak with NeuNer on the matter.
BANG!! Big show today!
– @cz_binance how @binance stays on top!
– @rogerkver takes sides on BCH
– @VitalikButerin talks about Ethereum 2.0
– @gaborgurbacs Van Eck ETF is VERY close!
– Crypto causes BIG waves in Marshall Islands!https://t.co/cGFSPWdyV0
— Ran Neuner (Non fungible) (@cryptomanran) November 8, 2018
Although volumes are evidently on the way out, Zhao claimed that his startup is doing just fine, but gave NeuNer and CNBC Africa viewers the following insider scoop on Binance’s performance since January 2018:
If you compare [volumes] to July or August, we are probably down a little bit because now, [crypto] prices are very stable. And when there are no movements in price, people trade less — so that’s kind of understandable.
CZ, who formerly worked at Blockchain and Bloomberg previously, went on to add that compared to January, publicly-available volume stats are likely down 90%. But, while these figures may have perturbed short-term speculators, the CEO explained that compared to one or two years ago, this industry is still booming in a relative sense. He elaborated:
If you compare [our volumes now] to two or three years ago, the volume here right now is great and there has always been of hundreds, if not thousands of exchanges in our space. So business is still okay and we’re still profitable and healthy.
In other words, if you today’s volume (or lack thereof) into a long-term perspective, the cryptocurrency market is doing all fine and dandy.
Speaking on another important metric — new user accounts — Zhao made similar claims, noting that while Binance’s current user base isn’t swelling as it did in January/February, his service is still signing up a “steady amount of new users every day.” Or in short, as the industry insider put it, “it’s very healthy.”
Again, pushing his narrative forward that crypto is doing just fine, CZ noted that the amount of Bitcoin (BTC) that Binance is holding in its cold wallets has been steadily increasing, which could indicate that traders trust the exchange more or they are preparing for the next bull run.
These stats aside, Zhao noted that while the market is in a “slowdown period,” indicators look quite healthy.
CZ: Sooner or Later, A Crypto Bull Run Will Occur
In the same interview, as reported by Ethereum World News earlier, NeuNer and CZ drew attention to this industry’s prospects — one of the hottest topics in 2018’s bearish market conditions.
Zhao, discussing catalysts for crypto’s next bull run, pointed out that institutional interest “may be a really strong trigger,” drawing attention to the launch of regulated stablecoins and institution-centric products, like Fidelity Digital Asset Services or Bakkt, for example. But still, seeing that prices haven’t moved, even with the establishment of these startups, Binance’s CEO added that he would be hard-pressed to pinpoint a specific event or product.
Still, Zhao, concluding his take on the question, said that “something will trigger” a bull run, “sooner or later.”
Zhao’s bullish sentiment comes amid reports that a growing number of analysts and industry leaders are calling for a bottom and a subsequent rebound in the crypto market.
Title Image Courtesy of Marco Verch via Flickr