Bitcoin Forum

New research from Sanford C. Bernstein & Co. suggests that revenue generated by cryptocurrency exchanges could more than double to hit $4 billion in 2018, Bloomberg reports August 17.

The report, titled “Crypto Trading — the Next Big Thing is Here?,” argues that the protracted crypto bear market is unlikely to impact the burgeoning revenue generated by exchanges.

Moreover, “as the crypto-asset class seasons and institutional demand builds,” traditional financial sector firms — including custodians and asset managers — will find “a plethora of opportunities,” the analysts suggest.

Bernstein found that in 2017, the buying and selling of cryptocurrencies generated $1.8 billion in transaction fees alone — equivalent to eight percent of the revenue of traditional exchanges. On the basis of the analysts’ findings, Bloomberg notes that “in terms of segments, only the global cash equities business surpassed crypto trading.”

https://s3.cointelegraph.com/storage/uploads/view/17484af383c818bd0878a07b508675c2.png

How cryptocurrencies' average daily traded volume over 30 days compares with major traditional segments. Source: Sanford C. Bernstein note citing CoinMarketCap, CBOE, Coindance, SIFMA, as cited by Bloomberg

The analysts note that the mainstream financial sector has been wary of entering crypto spot markets amid regulatory uncertainty and market volatility that besets the nascent industry.

They add that Wall Street’s circumspection risks that in the U.S., major crypto exchange and wallet provider Coinbase could end up with an “unassailable competitive position.” The analysts estimate that Coinbase boasts a whopping 50 percent of the transaction revenue pool.

As Cointelegraph reported earlier this week, Coinbase CEO Brian Armstrong has said that the exchange was signing up 50,000 users per day in 2017, helping customers to trade $150 billion worth in crypto that year.

https://cointelegraph.com/news/analysts-crypto-trading-revenue-could-more-than-double-in-2018

However "could more than double" or could not - useless information from Sanford C. Bernstein & Co., thank you!

All are predictions, possible. There is no definite information that we must double. In my opinion, 2018 is not a good time to double, it is a good time to invest.

All these stats depend on the volume of the market at the moment trading volume is way behind from last year so o do not think the revenue can increase, yes if volume increases rapidly in coming weeks then definitely exchange revenue will also increase.

This statistic can only be used as a reference. It should be known that in the market of cryptocurrency, there are a lot of factors for manipulating prices. Whales can pull a shitcoin up to 100 times in one day.

This will be useful if the big whales will go for this news but if they will not then there is no big changes that will happen and doubling the investment will remain a dream.

Demand vs supply is kinda scary especially if the holder of the big investments are big whales therefore they can monopoly it's price anytime. News are part of it I guess.

In my estimation, your opinion is highly valid. Wish I had sMerit to bestow on your comment. While the noobs are crying blue murder, the old hands are accumulating the coins at every dip. This is because they are long term at this bearish moment. Those who believe 2018 should bring them easy fortune through cryptocurrency following what happened in 2017 should just bury that thought and face reality on ground. To that, I don't trust any report projecting what price will be in the future for any crypto.

It is good news that shows importance of cryptocurrencies and real interest in them. If such big agencies are saying positive information about cryptocurrencies, it means that we are going to see huge rise of prices in few days.

While the popularity is growing, the income of exchangers will grow, but on the other hand, tighter control by the government and popularity will immediately decrease.

We know that even in these difficult conditions exchanges are making a lot of money, the only ones not making money right now are traders ad long term holders everyone else is still making money, bitcoin casinos are making money, the miners are making money as well, they are not affected by this and once the market recovers and goes even higher their profits will do nothing but to increase.