In the latest interview with CNBC, Changpeng Zhao (CZ), Binance’s CEO has stated that the exchange in real-time numbers has two times more volume than statistics indicate. Thus, at current rates despite the price drop from historic 2017 prices of nearly $20,000 to $6,500 prices in November 2018; the markets and especially Binance has seen volumes far in excess of the actual daily reports, the industry leader stated.
Accordingly, the markets are poised and healthy despite the year-long plummeting prices, he shared. But much of the latest stability that has swept across the markets is due to BTC’s stability. The volume of Binance is lesser by as much as 90% since January,
“So we only have one-tenth of the trading volume compared to what we had in January. But, compared to like a year or two years ago, we’re still trading at huge volumes. Business is still okay, we are still profitable, and we are still a very healthy business,” the CEO stated.
Crypto Market is Volume Based
Typically market data providers such as CoinCap, CoinMarketCap, and CryptoCompare use the volumes reported on exchanges such as Binance. Research firm TABB Group has stated that OTC market is where the large-sized institutional investors trade and these are at least two times the size of the exchange markets.
Quoting these research findings, CZ also stated that the OTC market is as large as the live “recorded volume” of the crypto market. This is twice the current volume size as well. If OTC market is likely to be the same size as ‘live recorded volumes on cryptocurrency exchange markets’ the actual market value of the cryptocurrency is nearly the same.
Hence, the issue with the under-reporting is because “least 50 percent of volumes that are not being reported on CoinMarketCap. But we’re not heading to that business, so we don’t know the real volumes” CZ noted during the course of the interview.
But the crypto-investor market influencer believes that a disrupting development is waiting to happen, possibly on the lines of Bakkt, which will catalyze the market moves and a rally will be triggered “sooner or later.”