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▲ Virtual asset trading
An analysis has revealed that the core driving force behind the liquidity in the virtual asset market originates not from institutions, but from exchanges centered around individual investors.
According to CryptoPotato, a cryptocurrency specialized media outlet, on April 13 (local time), virtual asset data platform CoinGecko released a report analyzing the trading intensity of Bitcoin (BTC) against holdings per exchange. Trading intensity refers to the ratio of actual traded volume to the Bitcoin balance held by an exchange. The report highlighted that exchanges with a higher proportion of individual investors show an overwhelmingly faster rate of capital turnover.
Bybit recorded a trading intensity of 6.02 against its holdings, showing the highest figure among those surveyed. This means that approximately 6 trades occurred for every Bitcoin held by the exchange. HTX also showed a high trading intensity of 4.49, demonstrating active trading by individual investors. Binance, the world's largest exchange, recorded an intensity of 1.48. Binance holds approximately 635,000 BTC, with an actual trading volume of about 942,000 BTC.
U.S. exchanges with a high proportion of institutional investors showed contrasting results. Coinbase holds the largest balance with approximately 828,000 BTC. However, its trading intensity was only 0.05, the lowest among those surveyed. Kraken and Bitstamp also showed low figures of 0.11 and 0.09, respectively. Institutional capital prefers long-term holding over trading, with a significant portion stored in cold storage.
Individual investors prefer frequent trading aimed at short-term price gains. This tendency increases exchange liquidity and promotes price discovery. In contrast, institution-centric exchanges possess vast capital, but their actual market trading vitality is low. Experts analyze that individual investors' trading patterns increase market volatility while simultaneously playing a key role in providing liquidity.
The health of the virtual asset market depends more on the virtuous cycle of funds than on mere holdings. Exchanges with high trading intensity can maintain relatively high profitability even during market downturns. CoinGecko assessed that asset management methods clearly differ depending on an exchange's business model and user composition. Investors are closely monitoring market supply-demand imbalances and changes in investor sentiment through exchange-specific indicators.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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