Bithumb cryptocurrency exchange of South Korea overtook Binance in terms of trading volume to become the world’s largest cryptocurrency exchanges. Its average trading volume increased to a whopping US$1.2 billion per day.
However, the worrying fact is that the visitor count has dropped at Bithumb.
Bithumb Cryptocurrency Exchange – Facts
A review report of a renowned cryptocurrency analytics company has said that in the month of November, average daily trading volumes of Bithumb have increased by more than 280%. While the figure was hovering around US$323 million during September-October 2018, it rose phenomenally to US$1.2 billion during October-November 2018. The report also points out that during the same period, the unique daily visitors of the South Korean Bithumb cryptocurrency exchange decreased by around 20%.
Is this a New Phenomenon for Bithumb Cryptocurrency Exchange?
The phenomenon of an increase in average daily trading volumes with consequent fall in unique daily visitors is not a new phenomenon. It has been seen in many other crypto exchanges too.
The concerned report also points out that the same phenomenon is witnessed at CoinTiger and Coinbene cryptocurrency exchanges too. However, it should also be noted that the case of Bithumb is a little different from the other exchanges showing similar trends. Bithumb has just 5,000 unique users per day. However, it still went on to become the largest cryptocurrency exchange of the world in terms of volume. If these two factors are compared with that of Binance, it can be seen that the unique visitor count of Binance on a daily has is 67,200. This means Binance has over 13 times more unique daily visitors than that of Bithumb. However, the average daily trade volume of Binance is only US$600 million, which is significantly lesser than the November figure of Bithumb cryptocurrency exchange.
The report says:
“A volume increase on an exchange, combined with a decrease in visitors may point towards incentive programs such as competitions, trans-fee mining, rebate programs or similar.”
The report notes that Bithumb has been offering its customers with multiple promotional offers including “Super Airdrop Festival” and “Special Gift”. It says Bithumb cryptocurrency exchange also offered 120% fee payback promotion last month, which reportedly collected them around 20% of the trading volume.
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