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Thank you for the spotlight on performance, however, this is not very helpful without the context of broader industry trends. Are you using one exchange as example of the norm, or as an example of an outlier? What is remarkable here?
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Hi Jesse,
As we mentioned, the volume drop was "the result of cryptocurrency prices that remain in decline." The remarkable note here is only that Kraken has a split BTC volume between the EU market and the US, when it was 2/3 of the operations business in Jan-17.
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Curious why the conclusion is that price drop was the direct cause of volume drop. IMO, volatility is more so the driver of volume. Is Kraken losing traders or losing EUR volume, or is USD volume just becoming a bigger piece of the business?
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Absolutely, volatility is certainly one a factor, and total trade count on Kraken has been on decline (Chart 1), as has BTC volatility since Jan-18 (See diar.co/volume-2-issue). As far as losing traders, EUR Volume, or USD Vol becoming bigger, all three are possible (Chart 2)
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Glad we agree. I was confused because the title of your chart specifically identifies only one of those 3 possibilities, leading the reader to believe that that is the correct interpretation and that there are not other possible interpretations.
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Our Editor, @faboualfa, will try tp squeeze updated analysis on this either in our upcoming issue on Monday, or next one as a follow-up and clarification.
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happy to have a conversation about industry trends, and what's happening at Kraken.