In the past two months, Huobi has been facing a string of negative news, including concerns about its solvency, arrests of its leadership, and reports of shady dealings. Surprisingly, despite these challenges, the exchange’s market share and trading volume have been steadily increasing in recent days.
To be specific, according to data from Kaiko, Huobi’s average daily trading volume in August has doubled compared to July, with some days even reaching over $1.5 billion.
Interestingly, while Huobi’s trading volume has been on the rise, the overall spot trading volume across the market has hit a record low in the past three years. Data from CryptoQuant on Huobi’s Inflow and Outflow hasn’t shown any significant trends in this period.
Moreover, Huobi’s market share in terms of trading volume has also surged in August, reaching 19% of the total market volume. This is a six-fold increase from its 3% market share in July. Notably, a majority of the trading volume on Huobi comprises various altcoins.
What’s worth noting is that Huobi’s market share is moving in the opposite direction of the overall trend, with it increasing while the general trading volume is decreasing. Despite this, there have been recent reports of declining reserves and reduced traffic on the Huobi exchange.
This puzzling increase in trading volume and market share raises many questions. The reasons behind this unusual trend and the exchange’s strategy remain unclear. We’ll have to wait and see for further developments from the exchange and its CEO, Justin Sun.