The Satis Group research firm has released more information about the cryptocurrency trading industry. According to the research undertaken, cryptocurrency trading in 2018 is set to overtake US corporate debt trading. Additionally, cryptocurrency trading is expected to grow by over 50% in 2019 with a compound annual growth rate (CAGR) of 9% through 2028. The report was titled ‘Crypto Asset Market Coverage Initiation: Trading & Custody’ and was released on September 18, 2018. Satis Group also previously released research which indicated that 78% of 2017 ICOs were scams.
The Satis Group report
The new Satis study focused primarily on trading exchanges, custody solutions, and OTC providers. Crypto trading is set to constitute over 10% of total US equity trading volume. Some of the key takeaways from the report indicated that the top 20 exchanges account for over 75% of all cryptocurrency trade volume and that BTC is the base reserve currency for over a third of all trading volume. The controversial Tether stablecoin comes second, accounting for 22%, and ETH accounts for 12%.
The report further highlights that although centralized exchanges (CEXs) dominate cryptocurrency trading volume right now, decentralized exchanges (DEXs) are becoming more competitive and will be serious contenders within 5 to 10 years. A DEX is basically a trustless exchange with no centralized authority for settlement, though the order book might still be centrally operated. Trades are facilitated using smart contracts and are recorded on the blockchain.
The top five cryptocurrency trading exchanges by 30-day volume mentioned in the report were Bitmex, Binance, OKex, Huobi, and Bitfinex. Bitmex has nearly three times more trade volume than its closest competitor, Binance. All the top trading exchanges tend to be located primarily in Asia, though they have all more or less morphed into international outfits with numerous offices and places of operation. By 30-day trade volume against BTC, the US Dollar holds 48% followed by the Japanese Yen at 27%. The Euro only holds 9%.
Other findings on cryptocurrency trading
Other points mentioned in the report was that cryptocurrency ATMs can now be found in over 3700 sites. The bitcoin ATM proliferation has not gone unnoticed, and there are over 500 independent operators in over 75 countries. Passively holding cryptocurrency assets is being increasingly penalized as cybercriminals intensify their attacks, and rapid access to funds is a prerequisite for cryptocurrency trading success. The report also highlighted the dangers of failing to securely store cryptocurrency and concludes –
“Despite the prolonged bear market, investment in the ground level foundation continues unabated. With evolving understanding of the fundamentals of the market, increased regulatory certainty in the US and abroad, and fiscal policies that continue to make alternative assets more attractive, the crypto market’s underlying infrastructure is continuing its expansion.”
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Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.