Cryptocurrencies

Coinbase controls 40% of the Bitcoin market (BTC / USD), what implications? – Cryptocurrencies

To invest responsibly and securely in Bitcoin and cryptocurrencies, it is customary to go through exchanges like Coinbase and others. Indeed, this investment inevitably involves exchanges between fiat currency and the cryptocurrency concerned. An analysis of the BTC / USD and BTC / EUR markets highlighted the exchanges that dominated the sector in terms of trade volume. As revealed The block, there are only four exchanges that have historically attracted the most liquidity for these pairs namely Bitfinex, Kraken, Bitstamp and Coinbase. This last platform largely dominates the debates on the BTC / USD markets.


Coinbase has never been hacked yet

This is one of the main reasons why the stock market maintains investor confidence and dominates this ranking. Indeed, if Coinbase has been the subject of suspected attacks in the past, everything seems to demonstrate that the platform benefits from a robust infrastructure. For the time being, the protection put in place keeps malicious attacks to the great satisfaction of the clients who invest in them. The confidence of the latter continues to grow, something which was eventually reflected in the share of the stock market in trading volumes, especially on the BTC / USD markets.

Even if Bitstamp and Bitfinex have experienced cases of piracy, this has not prevented them from appearing at the top of the ranking. There were, however, consequences since Bitfinex’s BTC / USD market share went from more than 50% to less than 20% in three years. For its part, Kraken can claim to be the undisputed leader in BTC / EUR volume. In addition, strict customer-oriented measures are being taken to avoid loss of funds. These provisions aim to attract the wealthiest investors.

Some figures on trade volumes

Although cryptocurrencies are attracting more and more investors, the highest monthly volumes recorded to date in 2020 are four times lower than those of December 2017. At the time, the price of bitcoin had peaked at $ 20,000, which had boosted trade. Even if prices are gradually going up, we are still far from this fervor without forgetting that there were the effects of the health crisis with the covid-19 pandemic.

In these exchange volumes, the specialized audit firm Chainalysis reports that about 96% of transactions on an average weekly basis were carried out by small investors. These represent the class of individuals who deposit less than 10,000 US dollars of Bitcoin at one time on the stock exchanges. However, it is the professional traders who control the liquidity of the market, since their transactions represent 85% of the dollar value of Bitcoin sent to exchanges.

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These figures show that more and more individuals are interested in an investment in bitcoin and that they are starting to act in this direction. The latter can also count on the quality of the stock market service like Coinbase, which particularly benefits from this craze..

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