US dollar-denominated trading on crypto exchanges fell by up to 47%

According to Kaiko, fiat trades on crypto exchanges that use the dollar have dropped from 69% to 47% over the past year. Meanwhile, the ratio of bitcoin to ethereum is at its highest level since July 2022.

The United States Dollar is taking a hit, as its fiat market share on centralized crypto exchanges (CEX) has dropped from 69% to 47% in the span of just one year.

US Dollar Market Share on Crypto Exchanges

Caco, an institutional cryptocurrency market data provider, in a report talked about the trading volume and price growth of bitcoin. The largest asset in the market crossed the $28,000 mark and continued to show strong momentum.

Decline in dominance of US dollar: KAICO
Decline in dominance of US dollar: KAICO

KAICO noted that based on information from the 18 most liquid crypto exchanges, the trading volume of cryptos reached a 4-month high on March 14 with a figure of $51 billion. The previous high came during the FTX collapse when trading volume reached $80 billion.

Trading volume hits new high after FTX collapse: KAICO
Trading volume hits new high after FTX collapse: KAICO

However, one concern that Caco points out is low liquidity. The company said that “liquidity remains thin” and that “2% market depth for BTC-USD and BTC-USDT pairs hit a 10-month low following the Silvergate collapse.”

Stablecoins dominate usage on CEX, and Kaiko believes that a number of events have brought stress to the sector. As it stands, 78% of all trades on centralized exchanges are denominated in stablecoins, while only 19% of trades are denominated in fiat currencies.

An interesting point to note is that in terms of usage, the use of the dollar has dropped from 69% to 47%. Meanwhile, the Korean Won shows good signs, being the second most popular fiat-denominated trade currency at 39%.

Record high bitcoin to ethereum ratio since July 2022

There are many more interesting figures in the KAICO report that show where the market is headed. One of the more notable highlights is that the Bitcoin to Ethereum ratio is at its highest since July 2022. This indicates how much better bitcoin is performing than the rest of the market. Since March 12, BTC is up 31% compared to ETH, which is up 18%.

While Ethereum is making upgrades in the pipeline that could positively impact its price, regulatory challenges and decisions by exchanges are holding it back. For example, Kraken recently announced that it would be shutting down its ETH staking service. The Attorney General of the United States also claimed that ETH is a security.

The Diminishing Correlation Between Bitcoin And Equities

Another interesting development noted by Kaiko is bitcoin’s falling correlation with equities. The asset’s 30-day rolling correlation with technical equities was around 30% last week, but BTC has outperformed equities recently, both in absolute and risk-adjusted terms.

Declining correlation between BTC and equities: Kaiko
Declining correlation between BTC and equities: Kaiko

These figures are proving that bitcoin is a resilient and viable option during periods of global economic turmoil. So far, crypto market movements seem to confirm this, though investors will have to wait and see.


BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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