Bitcoin Wallets Up 897,872 In August Despite 14-month Low Volatility
Bitcoin may be struggling to cross $6,500 level. However, the adoption is continuing at a brisk pace as reflected by the unabated rise in the number of wallets created in August. In the year-to-date, 11,676.051 Bitcoin wallets have been opened according to the information provided by Blockchain.info.
In the past one month, 1,332, 632 wallets have been opened. So far in August 2018, 897,872 wallets have been created by crypto investors. The total number of wallets created has reached a historical high of 27,858,162.
Notably, according to Diar, a weekly institutional publication on cryptocurrencies, the volatility of Bitcoin has fallen to 14-month low. Interestingly, the volatility of Bitcoin started declining after Bitcoin futures was launched by CME in December 2017.
Commenting on the decline, CME Chairman Leo Melamed stated
“We will regulate, make bitcoin not wild, nor wilder. We’ll tame it into a regular type instrument of trade with rules.”
Cryptocurrency exchanges are also seeing an explosive growth in profits. The overall profit of cryptocurrency exchange is expected to touch $4 billion this year, more than double the $1.80 billion profit recorded last year.
The profit earned last year was only 8% of the profit generated by traditional stock exchanges. Still, the unprecedented growth is expected to continue in the years ahead. Binance, the largest exchange by trading volume, is expected to post more than $1 billion in profits. Notably 50% of the total profit of cryptocurrency exchanges is recorded by Coinbase.
Likewise, Bitmex continues to create new records in trading volume. The exchange hit a $8 billion daily trading volume in the last week of July.
Cryptocurrency exchanges such as Coinbase, Bittrex, Kraken, Square, Robinhood are investing a lot in improving their infrastructure in expectation of strong growth in business.
Despite low volatility, futures market still lacks the liquidity that will attract big players. Exchanges such as CBOE want to resolve this issue through the launch of Bitcoin ETF. However, they have not received approval from the SEC so far.