- As of June 2022, there were 221 million identified people who have made a cryptocurrency transaction.
- The three largest exchanges in the world alone add up to a daily trading volume of more than $41 billion.
- There are already three exchanges that have frozen withdrawals, and it seems that there will be more.
The cryptocurrency exchange business is one of the newest in the world, although it is also one of the most volatile. As volatile as the price of tokens related to digital asset projects.
The market leader is Binance, the world’s largest cryptocurrency exchange (Statista data from June 2022), with a daily trading volume of over $25 billion.
The second is DeepCoin, with 8.6 billion dollars exchanged in 24 hours, and the third, Tokencan, with 6.7 billion.
The market they are targeting is not minor, and it is growing daily. The global cryptocurrency user base increased by nearly 190 percent between 2018 and 2020, accelerating further in 2021.
The data is from Statista based on different sources, such as information from trading platforms and wallets.
It is understood that, at the beginning, the increase in the number of users was due to the increasing number of accounts that could be identified.
However, since 2021, cryptocurrency adoption has deepened as companies like Tesla and Mastercard announced their interest in the sector.
On top of that, El Salvador, for example, became the first country in the world to accept Bitcoin as legal tender.
However, the fall of the global economy after the pandemic and the war crisis in Europe dragged down the price of all cryptocurrencies and this is causing an avalanche of problems.
Bitcoin, which was trading above $60,000 in the first quarter of 2022, plummeted to $19,000, a drop that has been common to all digital currencies.
This has caused problems on some exchanges, such as CoinFLEXwhich froze withdrawals last week, the same as BlockFi.
Crypto.commeanwhile, announced job cuts in the midst of the crisis.
Another example is what happened with Three Arrows Capitala lender in the sector that fell into total liquidation after the collapse of the digital asset market in recent weeks.
The collapse of Vauld
In this scenario, Singapore-based cryptocurrency trading and lending platform, vauldannounced this Monday, July 4, that it has suspended withdrawals and trading and will seek new investors.
Vauld CEO Darshan Bathija posted on his blog that they were “financially challenged” by “the volatile condition of the market, the problems of our key trading partners that inevitably affect us.” He spoke of the “bad market climate” that has led to a “significant number of customer withdrawals of more than $198 million since June 12.”
The great collapse occurred when after a drop in the Bitcoin price crashed the stablecoin Terra USD, and its collateral coin Luna.
Also the American giant Celsius fell from grace.
Vauld said he has appointed legal and financial advisers and is in talks with potential investors.
In short, the entire sector is in serious trouble, in a greater than usual volatility inertia. Obviously, the crypto ecosystem grew more than it could sustain and now the results are seen.
Market analysts understand that there will be a purge of projects that were merely speculative and only those that offer some additional value to the mere exchange of assets will be sustained.
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