Cryptocurrency Market Volumes Reach Nine-Month High
In February, total volumes in the digital asset market went back to levels not seen since the summer of 2018.
In a sign of continued recovery, the overall digital asset markets saw volumes boosted to nine-month highs, with significant growth registered in the past week. Total trading exceeded the equivalent of $36 billion, as per CoinMarketCap data. The spike in trading extended as Bitcoin (BTC) moves closer to the $4,000 level once again.
Both BTC and altcoins have recently been moving in coordination while preserving a steady ratio in terms of the entire market capitalization. So far, no single asset has grown to dominate others.
Trading activity is marked by robust performance among the leading coins, especially Ethereum (ETH), which seems to be on the mend toward $150. Other altcoins have also risen from recent lows. The increase in volumes shows the markets activating after an extremely slow January. For now, the increased activity has led to price appreciation for most assets, but it remains to be seen if the rally endures.
In a continued sign of recovery, Binance has seen its volumes increase as well, expanding from around $600 million equivalent in the past months to above $1.3 billion. The exchange has registered increased activity in separate altcoins, including BitTorrent Token (BTT) and EOS.
The increase in volumes, however, comes with a changed profile of trades. The importance of BTC has decreased, and BTC pairs make up around 28% of volumes versus more than 32% previously. The weight of Tether (USDT) has increased, and the asset now accounts for over 27% of all trades, up from a typical level of around 23% in recent weeks. USDT boosts both BTC and altcoins.
Ethereum (ETH) is also active in a multitude of pairs. This increased crypto-to-crypto trading means that despite the relatively slow inflows of fiat, the market allows for gains in other digital assets.
The rising volumes are also due to niche exchanges gaining traction, boosted by hot altcoins. Trading through LocalBitcoins is also growing, especially in Venezuela and other Latin American countries.