Data shows that Bitcoin trading volume surged last week following the removal of Binance fees on its platform.
Bitcoin trading volume on Binance alone reached $11 billion on July 8
According to the latest weekly report from Arcane Research, BTC volume on Binance alone accounted for 84% of the total market.
“Daily Trading Volume” is an indicator that measures the total amount of Bitcoin that changed hands on the network (or on a particular exchange) in a day.
When the value of the metric increases, it means that the number of coins traded on the chain is increasing at the moment. Such a trend may show that the network is becoming more active.
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On the other hand, the drop in volumes may suggest that the BTC blockchain is losing activity at the moment. This may be a sign that investors are losing interest in cryptocurrency trading.
Now, here is a graph showing the trend of Bitcoin transaction volume over the last year:
The value of the metric seems to have shown a spike in the last few days | Source: Arcane Research Weekly Update – Week 27, 2022
As you can see from the chart above, Bitcoin’s 7-day average daily trading volume has seen an increase over the past week. However, the report notes that this increase in the value of the indicator does not come from organic trade.
Binance removed fees from its platform for certain spot BTC pairs last week to celebrate its fifth anniversary. Many merchants have engaged in a large number of fictitious exchanges to exploit suppression to access high fees (unlocked based on user volume).
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The value of the metric reached $11 billion for Binance on July 8, accounting for 84% of the total volume across the entire BTC network.
Although Binance is the largest exchange in the market, its volumes typically account for around 50-60% of the total market.
Other exchanges have seen very little activity over the past week, with their average even approaching a one-year low. This means that organic trading in the Bitcoin market is still pretty quiet at the moment.
BTC price
At the time of writing, the price of Bitcoin is hovering around $20.9k, down 2% over the past seven days. Over the last month, the cryptocurrency has lost 4% in value.
The chart below shows the price trend of the coin in the last five days.
It seems that the value of cryptocurrencies has increased in recent days | Source: BTCUSD on TradingView Featured Image by Mariia Shalabaieva on Unsplash.com, Charts from TradingView.com, Arcane Research
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