Cryptocurrency derivative exchange Bitget has come into the limelight with a significant leap in users, surpassing 20 million. This growth has been attributed to the integration of a recently acquired self-custodial wallet service, Bitkeep, now the Bitget wallet. The spurt in growth propelled Bitget to an impressive fourth place among the largest cryptocurrency exchanges by trading volume.
According to a second-quarter report from TokenInsight, Bitget held a commendable 8.1% market share of total trading volumes. With Binance at the helm with 52%, OKX and Bybit rounded off the top slots after Bitget, thereby making the top four exchanges account for an enormous 85% of the combined market trading volume.
Yet, the undercurrents and overall market performance of Bitget in 2023 suggest a more intricate story. Bitget’s attribute of providing copy trading influenced its robust performance in the second quarter. This feature enables users to replicate trading strategies from select traders. By welcoming a new set of 29,700 sophisticated traders and 169,800 followers, the platform could generate a profit of around $33 million halfway through 2023.
There is, however, an alternate angle. Even as Bitget grows, concerns loom over reserve maintenance. Although Bitget, like its contemporaries, maintains more than 100% of all users’ assets, one wonders how sustainable this is, given the intense competition and the volatility of cryptocurrencies.
While on the one hand, Bitget exudes confidence with a reserve ratio of 223% (total platform’s assets divided by the users’ assets), it cannot evade the shadow of risks associated with the crypto markets. The company’s efforts to secure virtual asset service provider registrations in Poland and Lithuania and its plans to establish a regional hub in Dubai demonstrate a relentless pursuit of progress amidst unpredictable market conditions.
Viewed through the lens of cryptocurrency advancements, these evolutions at Bitget signify a broader shift in the market’s dynamics. While the relentless pursuit of growth and innovation continues, the perennial question of sustainability amidst volatile cryptocurrencies gains momentum. Safety measures and constant adaption to market trends will hold the key to the future of cryptocurrency exchanges like Bitget, ushering in a more stable, robust era for the crypto world. The future beckons!
Source: Cointelegraph
