Advertisement
AD

Main navigation

Binance Sees Enormous Volume Drop: What's Happening?

Advertisement
Tue, 28/05/2024 - 9:50
Binance Sees Enormous Volume Drop: What's Happening?
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

According to a CoinGlass report, Binance sees a substantial drop in trading volume, which is currently tied to trading bots that are used for stabilizing the market and liquidity. As for now, major assets are losing from 70% up to 95% of their volume, but it is not yet clear what the reason is behind the drop.

Advertisement

The report goes further to indicate that Binance currently experiences huge declines in trading volumes related to inter-trading bots that are used for market stabilization and providing the necessary liquidity. At the moment, the main assets are losing from 70% up to 95% of their volume, yet it is unclear why this volume dropped.

The drop is huge, amount-wise. On some, it is steep. For example, Pepe was down by over 97.5%, Bitcoin was down by 62% and Solana plunged by 88.9%. Obviously, it might create some issues with liquidity, if CoinGlass's report is correct.

One of the potential reasons for this to unexpectedly happen is a failure of the trading bots that keep the market's liquidity balanced. They are widely used by traders with a number of functions: arbitrage, market-making and provision of liquidity

If some critical bot goes offline, it removes a substantial part of trading activity in a tick, causing a sudden fall in transaction volume. Such bots are used nearly on nearly every centralized exchange and are an integral part of a smooth user experience in trading.

There can be many reasons for bots going offline — it may be a technical glitch, update or maintenance work going on at the platform; changes in the policy or restrictions of APIs by Binance may be another reason. Therefore, in this sense, the bots are going to be stopped sometimes as a consequence of changing policies or restrictions being imposed by Binance over APIs.  

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD