Chapter cryptocurrency exchanges Binance, Chanpen Zhao (Changpeng Zhao) said that the market of digital currencies is in good condition, despite the protracted recession. About this businessman said during an interview in the program Crypto Trader on CNBC.
Over the past year, the cryptocurrency market have lost more than 70% of the cost. It was the fourth largest market correction over the entire ten years of its existence. According to Zhao, the volume of trading on Binance decreased by 90% during this period.
“In comparison with January, we have lost 90%. We have only one-tenth of the volume that we had then. But, if you compare with a year or two earlier, we traded more volume. Our Affairs are in order, we still have the profit and lead a healthy business”, — said Zhao in an interview.
He also said that exchange every day there are new users and, consequently, increases the amount of funds in cold wallets Binance. Zhao called the stable growth. Binance is one of the main sources of information for data aggregators of data on cryptocurrencies such as CoinMarketCap and CryptoCompare.
However, the cause for concern among such major exchanges as Binance still there. As a recent study by the research companies Digital Assets Research and TABB Group, trading volume on the OTC market (OTC) has grown considerably in recent times. To date, the OTC market is two times bigger than stock, which is associated with the advent of institutional investors who prefer to enter into capovolto sphere in this way.
“1 to 1.5 million bitcoins (BTC) is traded on the OTC market on a daily basis. It is strange that it is not visible on the blockchain, which shows a paltry 100 000 BTC per day”, — commented on the situation at the time of the research analyst Eric wall (Eric Wall).
In General, the daily volume of trading on the cryptocurrency market is about $11.7 billion as of Nov. This is significantly less than it was in January, however, when you consider the volume of the OTC market, this figure increases to $23,4 billion.
“I heard that the OTC market is at least equal to stock. So, at least 50% of the total trading cryptocurrency is not reflected on CoinMarketCap. But we are not moving in that direction, so we don’t know the real figures,” said Zhao.
Chapter Binance suggested that in the coming months, the cryptocurrency market starts to grow, and the next rally can be caused by, for example, such a positive event as the beginning of trading bitcoin futures Bakkt.