Binance Crypto Exchange Records Highest Quarterly Volume
World’s leading crypto exchange, Binance, recorded the highest quarterly volume evident by the amount of coin burn for Q1 2020. According to the original Whitepaper, every quarter, it burns 20% of its profits. The estimates suggest a profit higher than $262.33 million in the Q1 of 2020.
Update: According to sources, Binance has changed the metrics for burn last year from 20% profits to burning tokens w.r.t. trading volume. Hence, the burn metrics indicate that volumes are record high since BNB release. The title has been changed accordingly as well.
At the 11th quarterly BNB Burn, Binance burned 3,373,988 BNB, worth 52.4 million USD, at the present rate of $15.55 per token. The Exchange notes,
This is the biggest BNB burn ever recorded, in terms of both BNB and fiat volume.
The previous high was recorded in the last quarter of 2019 with profits’ totalling $190.
In accordance with the previous metrics, the cumulative profits crossed the $1 billion mark after its 9th ‘coin burn’ in Q3 of 2019. It seems to have added 452.33 million as the total exchange profit now reaches $1.487 billion.
Apart from leading the crypto-space in spot markets, the exchange has now gained adequate dominance in the derivatives market as well. While trading volume is an ambiguous metric, the profits from the derivatives market should also add to the total.
Furthermore, Binance recently launched options trading on the exchange which will help in the growth of the business.
The coin burns are bullish for the Binance [BNB] coin as well, as it results in a decreased supply. The token is designed to burn 46.6% of its total supply until it reaches 100 million tokens.
Currently, the price faces resistance from the $17.3 from the 200-Day Exponential Moving Average (EMA) on a daily scale. On a weekly scale, it faces resistance from the 50-period EMA around the same level at $17.6.
With respect to Bitcoin [BTC], the price has broken above the moving averages forming higher highs and higher lows. Nevertheless, it faces resistance from the 0.00229 BTC range resistance.
How do you think the exchange and its token will perform in the rest of 2020? Please share your views with us.
Binance Crypto Exchange Records Highest Quarterly Volume
World’s leading crypto exchange, Binance, recorded most profitable quarter evident by the amount of coin burn for Q1 2020. Every quarter, it burns 20% of its profits. The estimates suggest a profit of $262.33 million in the Q1 of 2020.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Bitcoin deposits hit record lows since 2016
The number of Bitcoin deposits on crypto exchanges have reached a new record low since 2016.
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3 Total number dividedOn April 12, 2020, the number of Bitcoin deposits made on crypto exchanges fell to a record low since August 2016.
In the recent past, there had already been a trend that Bitcoin investors were pulling their assets off crypto exchanges, which hit some trading platforms hard. The number of Bitcoin (BTC) on BitMEX and Bitfinex has drastically decreased in recent weeks.
Bitcoin deposits. Source: glassnode
While the number of Bitcoin held on crypto exchanges has also decreased overall, this number has not decreased as much as Bitcoin deposits. The number of Bitcoin assets held in custody “only” reaches a comparable low as in mid-2019.
This can be explained by the fact that the number of payments from crypto exchanges has decreased somewhat less.
Bitcoin deposits and withdrawals compared. Source: glassnode
Another reason is that although the number of deposits has decreased, the volume of individual deposits remains relatively high. The average value of the individual deposits has therefore risen.
Total value of Bitcoin deposits. Source: glassnode
The downward trend in deposits is unlikely to reverse in the near future as bitcoin halving is imminent. Many experts assume that halving, i.e. halving the rate of increase in the quantity in circulation, will push up the price. Accordingly, investors will probably prefer to keep their existing Bitcoin assets themselves rather than storing them on a crypto exchange.
Bloomberg Makes Best Case for Crypto Attacking Federal Reserve
Bloomberg may have just made the best possible case for crypto. In an opinion piece for the mainstream news outlet, the writer points out that, “by throwing trillions of dollars at the coronavirus problem, governments risk undermining trust in currencies.”
As the Bloomberg piece points out, governments pledging to do “whatever it takes” is “going to cost a lot of money.” This is extremely concerning as it highlights how meaningless money is and it starts people thinking. After all, if the Federal Reserve can simply create trillions of dollars out of thin air; why can’t they just print money to pay for other things, like taxes, and healthcare, and, maybe a wall at the border.
Since before the 2008/9 crisis, Bloomberg found that 12 major economies including China, the U.S., the eurozone, and Japan had already “more than doubled” to an astounding $80tn. They point out:
These numbers are so large that they no longer have any meaning; they are simply abstractions. It’s been some time since people thought about the concept of money and its purpose.
Here comes the clincher and sounds a lot like something Warren Buffet would say about crypto:
The dollar has no real intrinsic value, backed only by the full faith and credit of the U.S. government.
There is no easy answer to that since we are still currently riding into the crisis. No one is quite sure how things will pan out, although, the outlook is not exactly rosy.
It’s hard to imagine a superpower like the USA experiencing hyperinflation like Venezuela or Argentina. However, that kind of sobering scenario isn’t entirely off the cards. After all, too many dollars in circulation will only diminish their purchasing power.
Bitcoinist spoke to the lead economist on The Marshall Islands crypto project SOV, and former Secretary-General of the BIS, Peter Dittus. He authored a book in 2017 entitled Revolution Required: The Ticking Time Bombs of the G7 Model in which he highlighted the irresponsibility of key monetary polices. When asked how he felt about the current situation and massive stimulus packages being thrown at the problem, he said:
I think the current situation basically has pricked the bubble, it could have been something else but now the governments are following up with more. I think in the current situation there’s not really much of a choice. However, the interesting thing will be to see how we come out of the crisis.
He goes on to explain that after the last crisis, there was also a huge increase in money supply which was then fed into asset prices and other areas.
They didn’t withdraw the stimulus, there was always more and now there’s a huge amount more and the question is what happens at the end of that crisis? Are they going to withdraw it or are we going to see something like defaults on a large scale, or will there be significant inflation… Something is going to happen if we are not careful about when we come out of the crisis, but it’s early days.
As Bloomberg points out making its best case for crypto yet:
The three main functions of a currency are as a unit of account, a medium of exchange and a store of value.
Excessive money printing of the USD has flung front and center the fact that it is fast losing its ability to act as the third. Now is the time for crypto to come into its own with no Federal Resevee or central bank debasing its value for holders from one day to the next.