The liquidity in crypto market has shown a rapid rise this year. The number of new currencies is growing, driving the mass popularity not only of the most famous currencies like Bitcoin, but also of those you haven’t heard about just a couple of years ago.
However, there is always a catch. Liquidity can go up really fast upon the introduction of a new currency, but the problem is to keep it growing the same speed.
Since early 2017, the speed of increase in the combined value of all crypto-assets has been outrageous. At the start of the year, the capitalization was around US$16 bln, and since that time is has already increased more than six times in only 6 months. According to some estimates, it ranges around US$100–110 billion.
However, we need to understand that with all that huge growth with more than 800 different crypto currencies, the leaders are obvious – Bitcoin and its nearest colleagues. Top-10 most active assets account for practically 90% of the crypto volume traded currently.
It means most crypto-currencies have problems with finding buyers and sellers for it, and if there is no liquidity you will get too volatile market. And if it’s too volatile, hardly there will be many investors.
Investors love the moves, but they need to have relative stability to discover trends and to catch them.
And this market as well as any other is about customers. If you provide somebody with good and reliable service, you can be sure your product will gain popularity. Banks, hedge funds, broker companies, exchanges and other financial institutes want to have orders executed at best price, so that you could buy and sell the sufficient amount of cryptocurrency any time. And the company that would offer the best service with high quality and low price will become the undeniable leader.
B2Broker is a leading trading technology provider who offers comprehensive solutions for brokerage companies. We help startup brokers build their business and offer solutions that allow the existing companies to increase efficiency and optimize workflows. Our main product line includes: Turnkey Ready Broker, White Label solution, Cloud CRM, PAMM and MAMM services, Cloud2Bridge, MT4/MT5 Web API, Legal and financial support, Crypto liquidity. Don’t waste your time on creating a legal and IT infrastructure, entrust it to us.
Artur Azizov is the General Director of LLC B2B Technologies and Marketing