crypto exchangeIn a research conducted by Sanford C. Bernstein & Co., profit generated by crypto exchanges could hit $4 billion this year. This was reported by Bloomberg on August 17.
In their report “Crypto Trading – The Next Big Thing is Here?”, it argues that the crypto bear market is highly unlikely to have an effect on the rising revenue produced by these exchanges.
In addition “as the crypto-asset class seasons and institutional demand builds”, many traditional financial institutions will find a “a plethora of opportunities”.
Bernstein & Co. cited, in 2017, transaction fees cryptocurrency trading alone generated more or less $1.8 billion. The amount is already eight percent equivalent of the income of traditional exchanges. Bloomberg also noted “in terms of segments, only the global cash equities business surpassed crypto trading.”
Analysts also discussed that the mainstream finance sector has been cautious of getting into the crypto spot markets brought about by regulatory uncertainties and its volatility.
It was also mentioned on the report that Coinbase, a major crypto exchange provider may end up soon with an “unassailable competitive position.” as it boasts a massive 50 percent of the transaction revenue sector.
Brian Armstrong, CEO of Coinbase, disclosed to Cointelegraph that the exchange registers 50,000 users daily in 2017 and allowed customers to trade $150 billion worth of cryptocurrencies.
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