Bitcoin is the main trendsetter in the crypto ecosystem, steering the wave of cryptos built on decentralist systems. Actually, it has become the de facto standard for all cryptocurrencies, accounting for more than two-thirds of the digital-assets’ market value. It is common for fintech analysts to base their ranking of coins on market cap, but the world of cryptocurrencies is always expanding. In fact, Bitcoin isn’t the most used cryptocurrency?
While reliable figures on cryptocurrency trading volumes can sometimes be hard to come by, data from both Statista and Yahoo Finance indicates that the leading cryptocurrency based on daily and monthly trading volume is Tether. Below, we will look at some of the leading digital currencies based on trade volumes.
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Tether (USDT) may have a market cap that is 30 times smaller than Bitcoin, but its trading volume surpasses that of Bitcoin by a significant margin. This coin overtook Bitcoin trades for the first time in early 2019 and has consistently maintained steady growth, with about $$21 billion daily trading volume.
It is arguably the most significant cryptocurrency in the crypto market. When it comes to monthly trading volumes, Bitcoin is trailing Tether by about 18 points. Tether is considered to be the main reason why authorities are wary about cryptocurrencies. At one time, the regulators put a halt on crypto-traded funds, citing manipulation.
Tether’s growth is believed to have been triggered by the Chinese crypto crackdown back in 2018. After the ban, stablecoins became the standard avenue for Chinese investors to transfer money in and out of the crypto ecosystem. Chinese have used Tether mainly as the on/off ramp between more stable assets and cryptocurrencies. And as you know, Asian traders contribute to almost 70% of all trading volume. So, if there is no Tether, most coin markets would lose a massive amount of daily trade.
Bitcoin (BTC) is the second most traded digital currency after Tether. The coin experienced exponential growth in the last few years. Its trading volume growth could easily match US bonds and stocks. According to data from Coin Metrics, Bitcoin’s daily trade volume on US spot markets amounts to about $0.5 billion. Its daily trading volume on the same market is slightly more than $4 billion. Current figures from Yahoo also indicate that BTC trade volume is only a few million shy of $15 billion. Probably, Bitcoin is still the most traded crypto asset given some of the tradings occur outside the crypto exchanges.
Being the first major Bitcoin alternative, Ethereum (ETH) has been built to run on Ether, its platform-specific cryptographic token. Ether allows developers to run applications on the Ethereum platform, but it can also be used by investors looking to purchase other crypto assets. It is the third most traded crypto asset, with a daily trading volume of about $6.5 billion. In the last few weeks, Ethereum has been circulating over 110 million coins.
Since 2018, Ethereum has held steadily on the third spot, despite posting a year-over-year rise in trade volume. As of Feb 2020, it was trading over $20 billion worth of Ether, but it seems things have turned south in recent months.
As of July 2020, Litecoin (LTC) is the fourth-most traded cryptocurrency. With a daily trade volume of about $1.35 billion and a 3-months average volume of roughly $3.23 billion, Litecoin is one of the most promising coins among the cryptocurrencies built based on the Bitcoin protocol. It has maintained a steady volume over the last couple of years. LTC suffered its greatest decline in trading volume during the 2018 bear season. Its trade volumes dropped by about 50%, but it regained the steady growth in early 2019. Over the last month, LTC has been trading on more than 1500 active markets with an average of 6% transparent volume.
EOS was launched in mid-2017 by cryptocurrency pioneer Dan Larimer, and it’s designed after Ethereum. It is more than a cryptocurrency, as it allows developers to launch several commercial applications. Despite being one of the newest crypto assets on this list, EOS is the fifth most traded digital currency, as of July 2020. According to Yahoo Finance and Statista, EOS has traded an average of $1 – $1.24 billion and a 3-month average trade volume of about $2.59 billion. Last month it was ranked 7th, but has, so far, overtaken Bitcoin Cash and XRP. In fact, EOS is currently circulating over 940 million coins at about $2.50, making it one of the most actively traded coins.
Bitcoin Cash (BCH) is a hard fork of Bitcoin that specializes in on-chain utility and scalability as a P2P electronic payment system. For a couple of months now, BCH has maintained the 6th spot in terms of the volume of trades. It is currently trading over 21 million coins, amounting to about $1.16 billion. So far, Okex is the most active market that trades BCH.
Its worst moment was in April 2018, when it almost halved after its block reward was cut down to 6.25. Other than this, this fork of Bitcoin has been hard forked two times. The recent one resulted in a split into two other coins: Bitcoin ABC and Bitcoin SV (Satoshi’s Vision).
Ripple (XRP) is a real-time gross settlement (RTGS) network that enables financial institutions to settle cross-border instantly and cost-effectively. So far, it has been fairly successful with this business model. That is why it is the 7th most traded crypto asset in the market, with a daily trading volume of about 1.05 billion. This is a slight decline from last month’s daily average of about $1.08billion. Nonetheless, XRP has had a stable performance this year. A few years ago, XRP had an all-time high of $2.77 billion. It is currently circulating a supply of over 40 billion at about $0.1838.
There you have it. Hong Kong-based Tether is still the most traded coin in the crypto market. Its volume has consistently exceeded Bitcoin’s since April 2019. While stable coins have entered the space in the last few years, Tether remains the favorite.