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Cryptocurrency Exchanges Trading Volume Can Reach $16T, FAANG’s Hit $12T

UTC by Benjamin Godfrey · 2 min read
Cryptocurrency Exchanges Trading Volume Can Reach $16T, FAANG’s Hit $12T
Photo: Shutterstock

With digital currencies gaining increasing awareness by the day, there is a high likelihood that more inflow of funds will be coming into the space.

The potentials inherent in the digital currency space can be reviewed by a new metric, the trade volume of cryptocurrency exchanges in comparison with mainstream public equities. As shared on Twitter by Yassine Elmandjra, a cryptocurrency analysts with Ark Investment Management, the thousands of digital currencies led by Bitcoin (BTC) now trades more volume combined than the largest public equities in the world.

Per the data shared, digital currency exchange platforms are on track to hit $16 trillion this year in trading volumes. This figure according to the analyst is up by more than 8x more than what was recorded in the previous year. For a proper perspective, Yassine said “FAANG stocks are on pace to reach only $12 tr of trading volume this year.”

The growth of cryptocurrency exchanges can be narrowed down to publicly listed American trading platform, Coinbase Global Inc (NASDAQ: COIN) whose first-quarter trading volume is approximately double its entire spot volume for the year 2020. The trading volume in Q1 came in at $462 while the figure for spot trading volume for the exchange in 2020 came in at $270 billion per the data shared by the analyst.

What Is Fueling the Growth of Cryptocurrency Exchanges

The entire digital currency ecosystem has been very much hyped this year. From mainstream media outfits talking about Bitcoin to the host of pro-crypto retail investors fueling discussions on promising altcoins on social media channels including Twitter, and Reddit, increasing awareness of the ecosystem has been triggered.

Cryptocurrency exchanges come as the direct source the growing number of crypto adopters get to buy their chosen digital currencies. The patronage on these exchanges is also been fueled by the tendency for purchased tokens to outperform traditional investment assets. Many want into these types of investments.

Digital currency trading platforms are particularly becoming more innovative across the board. The launch of new product offerings including launchpads for new projects, the sale of club fan tokens and the trading of digital stock tokens has also increased the inflow of all classes of customers to these exchanges.

With digital currencies gaining increasing awareness by the day, there is a high likelihood that more inflow of funds will be coming into the space. Exchanges are the only vital channels to get these capitals into the ecosystem, and as such, the possibility of these trading volumes skyrocketing in the coming quarters and years is very high.

Cryptocurrency news, Market News, News, Stocks
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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