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Bitcoin records trading dominance of over 40% on Binance

Chayanika Deka

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Source: Pixabay

Bitcoin began its year on a negative note. Its price fell below $7,200 on the second day of the year. The much-awaited Santa Claus rally didn’t materialize for the world’s largest cryptocurrency as the optimism fueled by the holiday spirit did not really catch up with the coin’s price.

However, soon, the price did rebound. Bitcoin jumped by over 2% on the third day of 2020 as it entered its eleventh year. Following a strong upward movement against the U.S Dollar, the coin was valued at $7,363 with a market cap of $133 billion. Meanwhile, Bitcoin continued to hold a market dominance of over 68.5%

Source: CoinStats | Bitcoin

Despite such setbacks, Bitcoin continues to be the king as the coin’s trading dominance was recorded to be above 40%. In the latest December Markets Overview, Binance Research revealed that Bitcoin’s trading dominance for the month was 40.48%. The figures, however, had declined by 1.28% since November, a month when it registered a trading dominance of 41.76%. Binance Research defines Bitcoin trading dominance as “the respective volume contribution from Bitcoin trading, with BTC as a base currency, relative to the total spot volume on a platform [e.g., Binance] over a period of time.”

Binance’s report highlighted,

“Bitcoin trading dominance remained above the 40% mark in December [40.48%], a slight decrease [-1.28%] from 41.76% in November. Meanwhile, the Bitcoin market dominance increased slightly from ~ 67% to ~ 68%.”

Source: Binance Research | Bitcoin Monthly Trading Volume on Binance

The yearly low for this metric was recorded at 11% in March 2019. Overall, the figures largely remained positive as it gradually rose shortly after. Bitcoin’s monthly trading dominance rose significantly in August to 45.06%, a figure which happens to be its yearly high. This occasioned with Bitcoin’s price surge to over $12k. The figures, however, fell to 39.88% in October and coincided with Bitcoin’s price falling below $8.5k in the same month.

Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.