Data shows Bitcoin spot trading volume has remained stable over the past week, but Binance’s dominance has increased.
Binance Bitcoin Trading Volume Domination About 96%
According to the latest weekly report from Arcane Research, BTC trading volume remained stable at around $10 billion last week. “Daily trading volume” is an indicator that measures the total amount of Bitcoins transacted on the Bitwise 10 exchange on a given day.
The metric only includes the volume of the Bitwise 10 exchange because it is known to provide the most reliable data on the market. Although not all platforms are present in the sector, trading volume trends can still provide a relevant picture of trends in the wider market.
When the value of the indicator is high, it means that a lot of coins are being moved in the current spot market. These trends can be a sign that traders are active in the market.
On the other hand, low values indicate that the Bitcoin spot market is currently observing low activity. A trend like this can indicate that there is no interest in the asset among investors today.
Now, here’s a chart showing the trend in the 7-day average of Bitcoin’s daily trading volume over the past year:
The 7-day average value of the metric seems to have been quite high in recent days | Source: Arcane Research's Ahead of the Curve - February 14
As shown in the chart above, Bitcoin’s 7-day average daily trading volume has risen in value by approximately $10 billion over the past week. However, as you can see, the majority of this volume is located in the cryptocurrency exchange Binance itself.
In the spot market excluding Binance, the indicator had a value of only $390 million in the last seven days, the lowest metric since January 7, 2023.
This means that 96% of the total trading volume on the Bitwise 10 exchange was contributed by Binance recently. The reason for this growth is that the volume on exchanges like Coinbase, Kraken, and Bitstamp have taken a hit at this time.
In general, when the price of Bitcoin trades sideways, the trading volume tends to decrease because investors usually find the consolidation market boring and therefore not much movement. Since BTC is showing a stale movement at the moment, it is not surprising that the volume is not very high on most of the exchanges.
As for why the volume of Binance is still very strong, so the platform is more dominant, the report explains, “the rotation from BUSD to USDT through Binance’s BTC pair can explain part of the Binance volume that rose last month, as both BTCBUSD and the BUSDUSDT pair have seen volumes which is higher in the background of Paxos news.
BTC price
At the time of writing, Bitcoin is trading around $22,100, down 4% over the past week.
Looks like BTC has continued to consolidate recently | Source: BTCUSD on TradingView
Featured images from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research