New Report Reveals that Minority of Cryptocurrencies Represent the Vast Majority of Trading Volume in the Virtual Currency Markets
Diar, a weekly newsletter on digital currency, assets, enterprise blockchain, etc. released a report that reveals that just a small section of cryptocurrencies represent the vast majority of trading volume in the virtual currency markets. Only 0.36 percent of tradable cryptocurrencies are believed to make up the 69 percent of the total trade volume of the entire cryptocurrency market.
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Sometime this week, a recent report was published by Diar and the news outlet has found that over half of the trading volumes of more than 1,600 cryptocurrency markets was produced by the pairings of up to five virtual currencies. These five virtual currencies include; BTC, XRP, ETH, BCH, and LTC. This report points out to Coinmarketcap data recorded on the 18th of June this year.
BTC pairings were found to comprise approximately of 33 percent of the roughly $12 billion in trade volume at press time for 18 June 2018. As for ETH pairings accounted for up to 12 percent of the total trade volume, followed by BCH with just 3 percent. Both XRP and LTC respectively accounted for 2 present each. Also, USDE parings were found to comprise of 17 percent of the trade volume of the cryptocurrency markets. Altogether, the combined volume of all other altcoin markets listed on Coinmarketcap was found to have to constitute just 31 percent of trade volume. According to the report, liquidity is near non-existent on the major of traded tokens, concluding that the price action of most altcoins is pinned to the peaks and valleys of bitcoin.
The publication also mentioned that a third of all cryptocurrency markets (542 tokens) generated less than $1, 000 in 24-hour trade volume. The report also discovered that 49.3 percent of altcoin markets (803 tokens) had produced less than $10,000 in trade volume. In addition to that, 67.3 percent (1,096 tokens) posted less than $100,000 in trade volume. Just 15.3 percent of cryptocurrencies produced a trading volume of $1 million or higher, also just 6.3 percent of markets generated up to $5 million or even more than that in 24-hour trade volume.