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Recent data collected by Block Research shows that the monthly traded volume for February surpassed $1 trillion for the first time.
The all-time trading volume record was achieved as the crypto market saw an unprecedented market surge from the beginning of the year.
As of Friday, the monthly volume was $1.05 trillion, which is a 15.9% increase from the previous record The data also showed that about 70% of this traded volume comes from Binance, while Kraken had 5.3% of the volume and Coinbase having 10.6% of the volume.
Bitcoin market cap crosses $1 trillion
Bitcoin is still the most traded cryptocurrency in the market when it comes to trading volume. Although the world’s largest cryptocurrency has shed some value, it’s still higher than its value at the beginning of the year. The token climbed above $1 trillion in market cap last week, which is also a record for the cryptocurrency.
Ethereum (ETH) is still the second-largest crypto asset, as well as the second on the list when it comes to trading volume in the market. In fact, its trading volume has increased after some investors decided to buy more of the token instead of the usually traded Bitcoin. Many believe the token
The market has not been particularly favorable for crypto holders and investors, as it continues shrinking. While Bitcoin lost about 20% value during the week, Ethereum shed more than 25% during the same period.
Cryptocurrency trading volume has been spurred by series of activities that include the increase in crypto prices. Last week, Purpose Bitcoin ETF, North America’s first-ever Bitcoin exchange-traded fund (ETF) was rolled out on the Toronto Stock Exchange.
On the first day of its trading volume, it rose well above the general trading volume for an ETF, with more than $80 million traded within the first hour.
In Europe, many crypto-tracking products that work like an ETF are already being traded. On the other hand, the US regulatory authorities have received several applications for the issuance of Bitcoin ETF application.
Increasing transaction costs discourage retail traders
Bitcoin and Ethereum have the largest transaction costs among all cryptocurrencies. It usually doesn’t impact institutional traders much, but retail traders who are buying smaller units are beginning to feel the impact.
As a result, some are gradually moving into other cryptocurrencies with much lower transaction costs. It’s believed that the forthcoming Ethereum 2.0 upgrade will scale up the platform, increase speed, and reduce transaction costs.
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