Poloniex Drops 23 Trading Pairs Today
Due to low liquidity, Poloniex once again shrinks its trading pairs, as the exchange lost its leading position in terms of volumes.
Poloniex will reduce its trading pair selection, removing 23 pairs with low volumes. The exchange has ceded its position among leading markets, while removing some pairs due to compliance problems.
The removals include a handful of assets in base pairs with altcoins such as Litecoin (LTC) and Ethereum (ETH), as well as low-volume tokens trading against the Tether (USDT) stablecoin.
Poloniex had 124 active trading pairs, according to the CoinMarketCap profile. Most leading exchanges have expanded beyond 400 trading pairs. On Poloniex, the most obscure trading pairs are virtually inactive, with a few hundred dollars’ worth of activity per day. Poloniex carries around $27 million in volumes, with around 60% of all trading focused on Bitcoin (BTC) pairs.
Poloniex is a somewhat important market for Ripple’s XRP, as the asset makes up about 8% of the exchange’s activity. Other pairs take up less than 2% of volumes, for LTC and ETH as well as a handful of more active assets.
The exchange’s native token, USDC, carries around 26% of all activity by facilitating BTC price discovery. The asset closely competes with the influence of USDT, the largest stablecoin by circulating supply.
Low volumes and obscure coins proved problematic for Poloniex about a month ago. The market for CLAMS, a thinly traded asset, caused losses to BTC lenders, which Poloniex initially socialized. The exchange is starting to refund some of the losses, as initially discontent traders threatened to sue the market.
“Starting later in August, if you are an impacted lender, you will be credited your Poloniex trading fees until your losses are fully recovered. Every time you pay a trading fee, we will convert the fee to BTC and then credit you those fees each day. Your first credit will include all the trading fees you have paid since June 6, 2019,” Poloniex announced.
Those that lost BTC will only be able to claw it back by pieces, and only if they trade actively, making the process prolonged and complex.
Poloniex may further lose market share as Binance USA is scheduled to start trading in September 2019.