CryptoCompare, the global cryptocurrency market data provider, today published its January 2019 Exchange Review, offering institutional and retail investors insights into the cryptocurrency exchange industry.
The January Monthly Review provides an overview of the current exchange landscape as well as a monthly evaluation of how spot volumes vs futures volumes have developed historically, including both crypto exchanges (BitMEX and BitflyerFX) and traditional exchanges (CBOE and CME). The review also focuses on how volumes have developed historically for the top trans-fee mining and decentralised exchanges.
In January, we continue to see positive signs of a maturation of the crypto markets, with the news that CoinFlex will launch physically-settled bitcoin futures in February; Bittrex introducing an OTC trading desk, supporting 200 digital assets; Binance supporting fiat pair trading across 58 jurisdictions; Komid Exchange managers are sent to prison for faking volumes; and news that the VanEck-SolidX bitcoin ETF proposal was re-submitted by CBOE.
The complete January Exchange Review can be found here.
- Top Exchange Volumes — ZB was the top exchange by total volume in January, followed by Binance and OKEX. The total volume for ZB in January was 19.6 billion USD, a 6.2% increase from December. The total volumes for Binance and OKEX fell 15% and 19.4% respectively in January.
- Trans-Fee Mining Exchanges — CoinBene was the largest TFM exchange in January, followed by ZBG and EXX. CoinBene traded 10 billion USD in total volume in January, down 3.2% since December. ZBG traded 6 billion USD and EXX traded 5.5 billion USD, up 18 and 20% since December respectively.
- Decentralised Exchanges — Ethermium was the largest DEX in January, followed by WavesDEX and OpenLedger. DEXs continue to represent only a small fraction of global spot exchange volume (0.19%), trading a monthly total of 385 million USD.
- Predominant Fee Type — Exchanges that charge taker fees represented 84% of total exchange volume in January, while those that implement trans-fee mining (TFM) represent 15%. Fee-charging exchanges traded a total of 141 billion USD in January, while those that implement TFM traded 25 billion USD. The remaining volume represented trading by exchanges that charge no trading fees, totalling 2.8 billion USD.
- Futures Trading — The proportion of futures trading volume decreased from 28% in December to 24% in January. BitFlyerFX traded the highest amount of BTC futures volume in January with a daily average transactional value of 1.13 billion USD (down 23% since December), followed by BitMEX perpetual futures at 665 million USD (down 41% since December). Futures products from traditional regulated exchanges (CME and CBOE) represented 11.7% of the Bitcoin to USD futures market in January, up from 6.36% in December.
- Fiat Capabilities — Monthly trading volume from exchanges that offer fiat pairs decreased by 26.5% in January to 37.5 billion USD, while crypto to crypto exchange volume decreased by 7.2% to 132 billion USD. Following this large decline in volume from exchanges that offer fiat trading pairs, in January they represented 22% of total spot volume, down from 26% in December.
- Bitcoin to Fiat Volumes — In January, 48% of Bitcoin trading into fiat was made up of the US Dollar (1.47 million BTC), down from 57% in December. BTC trading into JPY decreased less (-24%) than that traded into USD (-49%) and EUR (-37%) since December. The USD, JPY and EUR made up 90% of total trading from Bitcoin into fiat in the previous month and remained dominance in January at 89% of fiat volume.
- Bitcoin to Stablecoin Volumes — Bitcoin trading into USDT represented 65% of trading into stablecoins and fiat coins in January, up from the 63.7% seen in December. USDT, PAX, USDC and GUSD represent the most popular stablecoins in terms of Bitcoin trading volume. BTC trading into PAX increased 66% in January at 114,000 BTC in total; however, USDT still represents that majority at 5.9 million BTC.
Charles Hayter, CEO of CryptoCompare, said:
“Despite market activity slowing, we are seeing increasing signs of a maturing crypto market, given that exchanges are setting up OTC trading desks, derivatives and index products. We continue to focus our efforts on providing retail and institutional investors with accurate data that they can trust as the basis for their investment decisions.”
The Methodology: CryptoCompare’s Monthly Exchange Review evaluates the consistency and quality of exchange data, which is incorporated into CryptoCompare’s real-time Aggregate Index Methodology (the CCCAGG), used to calculate the best price estimation of cryptocurrency pairs traded across global exchanges. It aggregates transactional data from more than 70 exchanges using a 24-hour volume weighted average for every cryptocurrency pair. Constituent CCCAGG exchanges are reviewed and amended each month to ensure that the most representative and reliable market data is used in CCCAGG pair pricing calculations.
ERSTE BANK HUNGARY IMPROVES AND SECURES THE REMOTE BANKING EXPERIENCE WITH ONESPAN MOBILE SECURITY
Leading Hungarian bank deploys OneSpan’s Mobile Security Suite to one million customers to make mobile banking convenient while fighting fraud and meeting PSD2 requirements
OneSpan™ (NASDAQ: OSPN), the global leader in securing remote banking transactions, today announced that Erste Bank Hungary, a subsidiary of Erste Group Bank AG, one of the leading banks in Central and Eastern Europe, has integrated OneSpan’s Mobile Security Suite into its banking app MobilBank. Erste Bank Hungary selected Mobile Security Suite to enable and protect online and mobile transactions and to comply with PSD2 requirements for authentication and dynamic linking.
The European Payment Council has stated that social engineering attacks continue to increase and remain instrumental in fraud schemes, often in combination with malware. Erste Bank Hungary chose to implement OneSpan’s Mobile Security Suite to protect against potential social engineering and malware attacks directed at its customers. OneSpan’s technology enables banks to integrate application shielding, biometric authentication and transaction signing.
Erste Bank Hungary added Mobile Security Suite’s Cronto visual transaction signing to replace the bank’s SMS authentication with push authentication for login and transaction signing. This new process improves security and eliminates significant costs related to SMS delivery. OneSpan’s Cronto technology also helps fight social engineering attacks like phishing, while enhancing the customer experience by enabling transaction signing using a color QR code.
“OneSpan’s proven technology will help us maintain our leading position in the market without compromising on security or the customer experience,” said Erste Bank Head of Digital Services, Akos Andras Molnar. “As part of this roll-out, our customers can also make online purchases using push notification with any retailer connecting to Erste Bank via the 3-D Secure protocol.”
“Criminal hackers continue to target banking customers as social engineering remains a preferred technique,” said OneSpan CEO, Scott Clements. “In their search for security solutions, banks need to consider cost, convenience and regulatory compliance. OneSpan’s technologies address these concerns so that banks can focus on providing a secure and convenient customer experience.”
HOW WILL LENDERS TREAT THE FINANCIAL SYMPTOMS OF COVID19?
COULD the coronavirus pandemic spark a financial crisis similar to that which was seen in 2008? Tim Kirby, Group Commercial Director of the global fintech Monevo, a personal lending marketplace and platform, discusses how Covid-19 could play out for lenders.
The 2008 financial crisis, explains Kirby, was about credit over-exposure. While strains are apparent in the money markets today, it is not 2008, when risky mortgage investments in the US banking sector and into the UK caused everything to collapse.
Kirby said: “The financial crash was self-inflicted for many reasons, including poor income verification, poor credit quality assessment and poor employment verification (self-certification). It was asset-backed predominantly as it was led by sub-prime mortgage lending.
“My thoughts are that once the virus is contained, the economy will most likely turn back on within a few months, however recovery to current levels will be somewhat longer.”
Kirby predicts that it is very possible this downturn will be shorter than the 2008 financial crisis based on a number of factors.
He said: “The financial crash was either at a house purchase level or encouraging debt consolidation through re-mortgaging that placed unsecured debt into secured debt over a longer term. The consumer then ramped up unsecured debt again with the same poor assessment applied and eventually ran out of headroom.
“This was propped up by the capital markets and warehouse funding lines being supported through securitisation models that rated the loans held in the bonds as AAA.”
Kirby adds that the coronavirus outbreak is more micro and consumer-led than the recession was.
“There is still a great deal of uncertainty, but consumers are certainly going to experience affordability difficulties in the short-term, perhaps three to six months,” Kirby explains. “Lenders are already tightening their criteria and that could lead to more tactical initiatives being introduced.”
Kirby points to the potential introduction of black-listing certain occupation types most affected, and reducing opening balances to applicants that they are most prepared to lend to.
He said: “At Monevo, we have been speaking to lenders who are predicting a 50% slow down, with some pausing to assess short-term strategies, as clearly there are aspects of credit / risk scorecards that aren’t working at the moment.”
Kirby also adds that access to capital markets will be a challenge in the short term: “Lenders who don’t lend off balance sheet may become constrained and you would have to question the Peer-to-Peer lender impact as the returns and appetite of investors could be under threat.”
“Additionally, those lenders nervous about funding certain cohorts of consumers, now have those very same consumers currently in their loan books.
“So, for lenders, focussing on forbearance and other support activity to protect these consumers in the short term of 3-6 months, will be a priority.
Kirby takes the view that it is important lenders relieve some repayment pressure from consumers in the short term, so they can rehabilitate when the new normal arrives.
“Lender feedback in the last week is that they haven’t seen a massive increase in defaults, it’s very early days though. Anecdotal feedback from lenders that are strong and well-funded is that they expect strong growth when the market returns, and that those who are optimised and agile will see an upswing.
“What I am hearing, is that consumers will remedially seek liquidity through debt, as the world normalises to address the short-term pain being experienced at present.”
Kirby adds that lenders who look at credit risk closely when the upturn comes in three to six months could see dramatic growth, albeit from a reduced base.
He added: “From Monevo’s perspective, day trading is difficult to predict and lenders are re-assessing short-term strategies. We are using the time at present to apply additional focus on our internal tech pipeline in driving the product development roadmap forward to continue to deliver great solutions for our partners.
“We want to ensure when normality returns and the upswing in both demand and supply inevitably happens, that we are supporting our origination partners and the lenders on our panel as effectively as possible.”
FOUR WAYS OPEN BANKING AND AI WILL REVOLUTIONISE ACCOUNTANCY
Ed Molyneux, CEO and co-founder of cloud accounting software company, FreeAgent It’s been just over two years since the...
HOW FINANCIAL SERVICES CAN GET TO GRIPS WITH RISING SUPPLY CHAIN RISK
By Alex Saric, smart procurement expert, Ivalua UK businesses have never been more dependent on their suppliers to help...
TWO TO TANGO? MARKET DATA AND OPINIONS IN INVESTMENT MANAGEMENT
Sebastien Lleo is Associate Professor of Finance and Head of the MSc in Risk and Financial Technologies at NEOMA Business...
AN ULTIMATE GUIDE TO TURNING YOUR EARLY RETIREMENT DREAM INTO A REALITY
Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ. ...
WHAT EVOLUTIONARY AI MEANS FOR FINANCIAL SERVICES
by Babak Hodjat, VP of Evolutionary AI at Cognizant Many banks and other financial services institutions (FIs) are beginning...
HARNESSING ANALYTICS IN THE FIGHT AGAINST FRAUD
By Anna Lykourina, EMEA Fraud Analytics Expert at SAS In the past, the fight against fraud has been a...
ERSTE BANK HUNGARY IMPROVES AND SECURES THE REMOTE BANKING EXPERIENCE WITH ONESPAN MOBILE SECURITY
Leading Hungarian bank deploys OneSpan’s Mobile Security Suite to one million customers to make mobile banking convenient while fighting fraud...
HOW WILL LENDERS TREAT THE FINANCIAL SYMPTOMS OF COVID19?
COULD the coronavirus pandemic spark a financial crisis similar to that which was seen in 2008? Tim Kirby, Group Commercial...
ISO 20022 – THE BEDROCK FOR PAYMENTS TRANSFORMATION
Lauren Jones, Global Payments Ambassador, Icon Solutions The financial services industry has seen ISO 20022 grow firmly over the...
2020 VISION: TRANSFORMING THE LEGAL DOCUMENTATION LANDSCAPE THROUGH STRUCTURED DATA
Jason Pugh, Managing Director, D2 Legal Technology The derivatives industry has been transformed by the proactive engagement of its...
WHY LANDLORDS SHOULD MAKE THE MOVE TO THE ALTERNATIVE PROPERTY INVESTMENT SECTOR IN 2020
Reece Mennie, CEO of leading UK investment introducing firm, Hunter Jones The new decade is expected to bring with...
PROTECTING YOURSELF AGAINST LOSS OF FUTURE INCOME IN A RECESSION
By Gerard Visser, Financial Planning Consultant at Alexander Forbes Financial Planning Consultants. With low GDP growth, credit ratings downgrades and the COVID-19 pandemic,...
MOBEY FORUM TO ADDRESS DATA PRIVACY AND INNOVATION IN THE AGE OF AI WITH NEW EXPERT GROUP
Mobey Forum, the global industry association empowering banks and financial institutions (FIs) to shape the future of digital financial services, today announces...
HOW TO MANAGE YOUR SMALL BUSINESS’S FINANCES
There are a lot of fantastic business ideas that end up failing during the early years. Why? A lack of...
THE EVOLUTION OF THE TECH CFO
Gavin Fallon,General Manager, UK, Nordics & South Africa Board International Chief Financial Officers (CFOs) have traditionally been seen as...
IS FRAUD PREVENTION CONVERGING WITH REGULATORY COMPLIANCE?
By Manuel Rodriguez, Fraud Solutions Manager at SAS Several relevant reports show how the world of fraud and financial crimes is mutable...
WHY SECURE APIS ARE THE KEY TO FINANCIAL CONTROL
Stefano Vaccino, Founder of Yapily Consumers never owned their financial data. Banks controlled everything from how much money came...
GOLDBELL FINANCIAL SERVICES SELECTS MAMBU TO POWER GEN INVESTMENT PLATFORM
Goldbell Financial Services, one of Singapore’s leading business finance providers, has confirmed it will partner with Mambu, the market-leading pure...
UK FINANCE WORKERS DISPEL MYTH OVER TECH JOB LOSS FEARS
– Research shows finance workers welcome the “rise of the machines” – The majority of UK finance workers have widely rejected the...
LOW-CODE TECHNOLOGY BOOSTS THE GROWTH OF SPECIALIST BANK
Hampshire Trust Bank (HTB) is a digitally-focussed specialist bank staffed by experts that enable UK businesses to realise their ambitions. Primary...