The crypto trade environment is getting progressively vicious as significant players battle to win the biggest portion of the market. Bittrex is one trade right now that seems, by all accounts, to be losing the battle.
US crypto trade, Bittrex, has been losing noteworthy ground to rivals over the recent years. To such an extent that even a progression of late airdrops, advancements, and expense limits have had little impact on its lessening piece of the overall industry.
In organization with CryptoQuant, Bitcoinist has been diving into the information to expedite you this select report the ebb and flow circumstance on the 2013 established, Seattle headquartered trade.
Diminishing MARKET SHARE
Before the finish of 2017, Bittrex was one of the world’s top crypto trades with practically 40% of the all out trade inflow piece of the pie. From that point forward, things turned south during the 2018 bear advertise and the stage never truly recouped from it.
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Since 2017, Bittrex has been one of the exchanges that has struggled the most to maintain its market share during the bear market. Its BTC inflow share fell from a high of 88 percent at one point to now being down around 2%.
Binance exchange, lead by Changpeng Zhao, started to gather momentum in 2018 despite the icy climes of crypto winter, and has since grown to consume almost 50% of the entire market share.
This has had a devastating effect on the likes of Bittrex, Poloniex and Bitfinex, which have lost out big time to the yellow beast.
Kraken has made a minor comeback in recent times, and BitMEX has gained some ground too, but the scene today is largely dominated by one player. Unless radical measures are taken to woo clients back from Binance, it’s possible that we could start seeing major platform closures in the near future.
BITTREX INCENTIVES ABOUND
The company has made several attempts to do this through incentives such as reduction in trading fees, customer reward programs, and further discounts. These, however, have had very little effect on boosting trading volumes, which continue to slide.
Following the mid-year rally, Bittrex announced a reduction in trading fees for USD markets. It stated that customers were able to take advantage of lower trading fees all the way down to 0% maker and 0.15% taker (reduced by 100% and 40% respectively).
However, this discount was only applicable to accounts with $30,000 or more in trading volume. According to Crypto Quant data, the incentive had negligible effects on exchange inflows. If anything, inflows showed a marked decrease after the incentive was announced.
The second of these incentives was announced in September 2019, when Bittrex revealed a new fee structure offering discounts for even higher volume accounts. This was generally targeting the deeper pocketed investors and not the average crypto day trader or hodler.
Qualifying accounts that have generated more than $200,000 USD in trading volume over the previous 30 days across all markets will have its trading fees reduced.
Again, there was very little reaction to this, presumably since the whales would not really be bothered by saving a few bucks on a trade when they’re dealing with such large volumes.
The following month Bittrex announced a credit incentive for clients on its new International platform.
Again, the rewards program, just like the trading fee structure change, had very little impact on overall volume on the exchange.
Due to regulatory pressure in the US, many exchanges launched a second global platform to serve international customers.
Clients from a list of 31 countries were also told that they could no longer use the platform and had to withdraw their crypto assets.
All trading and account access for these impacted customers will be halted on Tuesday, October 29 date at 19:00 UTC/21:00 CEST. Please remove your coins and tokens as soon as possible.
So, effectively Bittrex has tried to keep its whale traders with trading fee reductions and offered very little to its regular traders, while alienating 16% of the world’s countries.
Judging by some of the comments on the company’s twitter feed, customer support has been an issue too, with many complaints about blocked access to assets and restricted countries.
It also appears that Bittrex International was closed in November last year and re-branded as Bittrex Global, though this too has had very little impact on exchange volumes and market share.
The incentives have continued into 2020 with the launch of a new edition of its credits customer reward program, Bittrex Credits 2.0. According to the press release, this is essentially a $15 airdrop to new customers to be used on the exchange within 30 days.
Bittrex has attempted to incentivize traders back to its platform over the past year or so but to little avail.
Binance meanwhile continues to consume the exchange and digital asset service industry like a ‘crypto google’, gobbling up all in its path.