Cryptocurrency exchanges are experiencing an increased income that is related to the fees they have on trading activities and other services. Some exchanges are registering over $3 million dollars per day according to Nauticus. What will happen with them in the future? Why don’t they cut trading fees even more?
Cryptocurrency Exchanges, Printing Money Machines
Virtual currency exchanges are becoming a real money making machine. The top exchanges are reaching incredible sums per day and some other are managing several billions of dollars per year. According to a survey conducted by Nauticus Exchange, the revenue of some top exchanges is growing exponentially.
For example, the crypto exchange Binance, made $7.5 million dollars in fees in the first quarter. It is important to mark that Binance opened in 2017, and it is a relatively new cryptocurrency exchange in the market. By March it was making more than $40 million fees a month, even after reducing 50% their trading fees.
Another exchange that is also registering impressive gains is Huobi, that managed to earn $54 million dollars a month with a lower trading volume than Binance. Kucoin, the 36th cryptocurrency exchange by trading volume is making almost $2 million dollars a month.
Increased Interest for Cryptocurrencies
During the last year, cryptocurrencies experienced an incredible growth that cryptocurrency exchanges were able to capitalize. Every day there were thousands of individuals creating accounts in the most important, and not so known, virtual currency exchanges.
As they were receiving an incredible flow of investors, their platforms were also not able to handle the increased amount of trading activities. Everyone wanted to buy Bitcoin when it was reaching its peak in December 2017. The same happened with Litecoin, Ripple, and other cryptocurrencies in the market.
Due to this situation, crypto exchanges suffered outages and other problems. Customer Supports were totally saturated and some users were not able to even buy or sell cryptocurrencies. At the same time, the fees did not get reduced and it created users to be really unhappy with the service provided.
Later this year, virtual currency exchanges decided to take action, modify the customer support (improve it), and reduce trading fees for users. As we are in a bear market since December 2017, the interest for bitcoin and other virtual currencies slowed down. This gave a window of opportunity to exchanges that wanted to improve their systems.
Some important crypto exchanges have now reduced their fees and improved their customer support. But with the money that they are making it is possible to keep asking for further reductions in trading and other fees.
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