Binance on its official website published a report on Altcoins. The report marks an increased trading volume and also the probable reasons behind the surge.
Per the report, the stagnant Bitcoin price has led to the shift of the interest of the traders on other altcoins. The bitcoin presently is losing its dominance as Altcoin market capitalization has risen significantly in the first week of July.
The report details the rise in the total altcoin volume in the major exchanges. The altcoin volume has surged to $5.1 billion from $2 billion (almost 150 percent) from the beginning of July 2020. Binance also witnessed a 4 times increase in the volume which is more than $2 billion today.
The report majorly focused on the rise of third-generation altcoins like Cardano(ADA) Chainlink(LINK) and VeChain(VET). The rise in the trading activity has shifted the investors to focus on altcoins rather than Bitcoin.
In his interview, Binance CEO, Chanpeng Zhao (CZ) also specified the rise of the major altcoins. He states that it has shot up in the past couple of months.
And the report published on Altcoins also adds aid to the fact that the altcoins are holding the grip while Bitcoin is losing dominance. However, Bitcoin has maintained its top position till now and has a high possibility of continuing to do so.
While Bitcoin is reluctant to move out of the range of $9100 to $9400 from the past couple of months, Binance CEO rightly points out that the crowning cryptocurrency is ‘really stable now’.
When asked about the time frame it requires to break down, CZ replied that the money inflow in the economy may probably lead to a breakdown. As bitcoin has maintained a narrow range from the past two months after sinking post the all-time high in May.
Responding to the twitter hack incident, CZ said that Bitcoin was not at its fault, rather it is more transparent than the traditional fiat currency.
He further explained citing an example that, if a bank is robbed, then it’s not possible to track the cash. But with bitcoin tracking the stolen coins are pretty simple with the bitcoin address.
Talking on the Bitcoin’s price, he said that multiple factors influence the price of a digital asset. Considering the Bitcoin’s price, he said,
“If you imagine bitcoin as the same as a float and there’s a rope tied to the float to the top of Titanic then the float will sink down with the Titanic. Even though the float does not have floating properties you’re just not able to sustain that kind of low.”
As many traders are witnessing an Altcoin season this year, CZ also said that among the 200 coins listed on Binance, only 3 coins have gone down or declined in the second quarter. Therefore the other coins than Bitcoin have a major bull run this season.
One of the reasons behind the surge might be the support from the big players of the space in favor of the crypto asset. Like recently, Elon Musk tweeted again in favor of DOGE. Hence the DOGE price surged to a certain limit.
In a nutshell, the new week in the crypto market begins with mixed reactions. The top crypto is changing hands by 0.11 percent, valuing it at $9157 against USD.
More so, other largest alts are following Binance’s rally – that being said, Ethereum (ETH) is surging by 1.44 percent, EOS entering the bull run by almost 4 percent surge.
What’s your view on Binance’s Altcoin trading volume?
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