Cryptocurrency trading is growing by leaps and bounds and the daily volume is poised to possibly exceed that of Apple’s, as per analysts closely associated with hedge funds.
“Cryptocurrency trading volume is now more than of $3bn/day on average, and will likely soon surpass that of the world’s most liquid stock: Apple ($4bn/day)”, said Jens Nordvig, founder and CEO of Exante Data, while giving a note on Friday. He also said that if we compare the global daily trading volume of the two biggest virtual currencies, bitcoin and ethereum, into conventional currencies, it has increased by eight folds in the last year. However, he is not completely sure if any virtual currency will actually be sustainable as an alternative to normal currencies.
Bitcoin has seen raise this year, in fact by five times for some time before going down owing to bans imposed by Chinese government on cryptocurrencies and negative sentiments expressed by JPMorgan CEO Jamie Dimon this month. Bitcoin’s value was lowered to around $3,524 on midday Friday, but this trading amount is still more than 260 percent of the value that was present at the beginning of the year.
Many crypto coin enthusiasts have stressed that Bitcoin is facilitating a way for new investors to enter into the market of ever increasing number of virtual currencies. According to industry aggregator CoinMarketCap, that has listed north of 350 cryptocurrencies with a market value of more than $1 million each, showed that the entire market value of all cryptocurrencies was $121 billion as of Friday.
Ethereum traded little bit lower near $256, which was more than 2,500 percent in terms of valuation for the year. While virtual currency trading volume is growing at a healthy rate, average daily trading volume in U.S. stocks went down in August to its least value in three years. Although things are positive, the community is quite watchful of the frequently fluctuating valuation of digital currencies.
“We do not believe that one can predict with confidence at this point that any given cryptocurrency will continue to thrive and gain status as an alternative to traditional currencies in the long term,” Nordvig stated. “But we look forward to using the information from an increasingly active cryptocurrency market in our tracking of global capital flows, when appropriate.”
The jump in Bitcoin and Ethereum valuation had resulted in tremendous rush of traders and investors, looking to ride the wave of financial boom. The market is quite optimistic looking at the current cryptocurrency trading volume of more than of $3 bln/day on average. The remarkable growth in cryptocurrency trading volumes is being fueled by large slump in stock trading volumes. Hence, it is projected that virtual trading would exceed the world’s most liquid stock, Apple which trades at $4 bln/day.