Coinbase has struggled to turn a profit after crypto prices plunged in the wake of the industry scandals. It posted its seventh consecutive quarterly loss in November, and its overall market share has declined, according to crypto data provider CCData. It is trying to find new ways to make money and expand its business beyond the U.S., where it generated more than 80% of its 2022 revenue.
At Binance, the world’s largest exchange, combined monthly spot and derivatives volume have dropped sharply. In January last year it recorded total volumes of $1.7tn, according to CCData. By January 9 this year the exchange had traded roughly $200bn.
The Bitcoin ETFs, which trade on the New York Stock Exchange, Nasdaq and CBOE Global Markets, racked up a collective $4.37bn of trading volume on their first day alone, according to CCData.
The purge of leverage and the growing possibility of a delayed approval, which has now influenced the mindset of some investors and traders, have led to a more cautious approach, contributing to the subdued price action of the last 24 hours,” said Jacob Joseph, research analyst at CCData, in an email late on Thursday. “While it still seems likely that a spot Bitcoin ETF will be approved in the coming days, any delay contrary to the market consensus is likely to result in a larger drawdown for digital assets.
Following the previous three halvings in 2012, 2016 and 2020, the coin saw triple-digit percentage gains or more by the end of the following year, according to data provided by CCData. “Historical data shows that bitcoin has typically experienced significant price breakouts and high returns following halving events,” Jacob Joseph, research analyst at CCData, told CNBC Pro . “However, this trend is not guaranteed, as demonstrated during the second bitcoin halving cycle, when prices remained subdued for about three months.”
Binance saw its trading volume boosted by FTX’s collapse in November 2022. Since then, its market share has shrunk, falling 20% through November 2023, according to CCData. The loss was worsened by the DOJ’s indictment against former CEO Changpeng Zhao.
Last month Tether, the company behind the largest stablecoin, signed up the US Department of Justice, Federal Bureau of Investigation and the US Secret Service to help prevent illicit use of its USDT token. Unsurprisingly the number of blacklisted Tether wallets has shot higher. Total numbers of banned wallets are up 20 per cent to 1,236 so far this month, according to CCData.
Based on CCData’s Q4 2023 Market Outlook Report, the BTC rally has created a significant impact on CBDCs, derivatives, RWAs.
According to numbers provided by CCData, it would have taken 1,418 bitcoins to move the price of the token by 1 per cent at the start of the year. At the end of April that number dropped to just 462 bitcoins. Latest figures show it would take only 386 bitcoins to have the same impact today.
The SOL token, which serves as the native digital asset of the high-performance blockchain platform Solana, reached $76.06 last night.
At this point, it had climbed over 17% since falling to as little as $64.91 the day before, additional CoinMarketCap data shows.
When explaining these latest upward price movements, analysts emphasized that numerous variables had helped produce these gains.
“This recent rally can be attributed to a confluence of factors, including the growing usage of Solana's network, increased interest from institutional investors, and a maturing ecosystem, which has seen DEX volumes reach all-time highs as well as an influx of stablecoin deposits,” Jacob Joseph, Research Analyst at CCData, wrote via comments sent through email.
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