• Crypto Lists
  • Bitcoin
  • Blockchain
  • ICO
  • Cryptocurrency
  • Altcoin
  • Advertise With Us
Newsletter
ItsBlockchain
  • Blockchain
  • Bitcoin
    featured

    A starter guide to Bitcoin Options trading

    Featured Image

    With Bitcoin Mining Capitulation Coming to an End, Will Halving Pump Begin?

    featured image

    Technical Indicators suggests Bitcoin can crash to 7000$ in next few days

    featured image

    Why is Bitcoin a safe haven in a financial crisis

    featured image

    How to Make Money in Crypto When It Falls

    featured image

    Despite Resurrection of Old Bitcoiners, HODL Waves Indicate Bullish Accumulation

    featured image

    Top 5 Online Merchants That Accept Cryptocurrency

    featured image

    An account into Bitcoin Lightning Network Progress and other Scalability Solutions

    featured image

    Why Bitcoin [BTC] Could Fall to $5,000. Now that Halving is Done

    Trending Tags

    • Altcoin
    • Crypto Lists
    • Trade Signal
    • News
      Bitcoin Market’s Sentiments turned bullish after USA President’s recent press conference

      Bitcoin Market’s Sentiments turned bullish after USA President’s recent press conference

      featured image

      Breaking : Crypto Trading is now legal in South Korea

      RBI to allow crypto trading

      Supreme court of India decided to lift off RBI Banking BAN against Bitcoin

      featured image

      Steemit Joining TRON Ecosystem

      Reliance Jiocoin

      Reliance Jio is preparing for Jio Coin launch in 2020

      A $134 Million real estate has sold on ethereum blockchain

      A $134 Million real estate has sold on ethereum blockchain

      Hacking attacks on cryptocurrency exchanges

      Hacking Attacks on Cryptocurrency Exchanges are rising, Why?

      Bithumb Launches in India

      Bithumb Global Launches in India

      US-China trade war effect on Bitcoin Price

      US-China trade war effect on Bitcoin Price

    • Crypto Market
    • Guide
    No Result
    View All Result
    • Blockchain
    • Bitcoin
      featured

      A starter guide to Bitcoin Options trading

      Featured Image

      With Bitcoin Mining Capitulation Coming to an End, Will Halving Pump Begin?

      featured image

      Technical Indicators suggests Bitcoin can crash to 7000$ in next few days

      featured image

      Why is Bitcoin a safe haven in a financial crisis

      featured image

      How to Make Money in Crypto When It Falls

      featured image

      Despite Resurrection of Old Bitcoiners, HODL Waves Indicate Bullish Accumulation

      featured image

      Top 5 Online Merchants That Accept Cryptocurrency

      featured image

      An account into Bitcoin Lightning Network Progress and other Scalability Solutions

      featured image

      Why Bitcoin [BTC] Could Fall to $5,000. Now that Halving is Done

      Trending Tags

      • Altcoin
      • Crypto Lists
      • Trade Signal
      • News
        Bitcoin Market’s Sentiments turned bullish after USA President’s recent press conference

        Bitcoin Market’s Sentiments turned bullish after USA President’s recent press conference

        featured image

        Breaking : Crypto Trading is now legal in South Korea

        RBI to allow crypto trading

        Supreme court of India decided to lift off RBI Banking BAN against Bitcoin

        featured image

        Steemit Joining TRON Ecosystem

        Reliance Jiocoin

        Reliance Jio is preparing for Jio Coin launch in 2020

        A $134 Million real estate has sold on ethereum blockchain

        A $134 Million real estate has sold on ethereum blockchain

        Hacking attacks on cryptocurrency exchanges

        Hacking Attacks on Cryptocurrency Exchanges are rising, Why?

        Bithumb Launches in India

        Bithumb Global Launches in India

        US-China trade war effect on Bitcoin Price

        US-China trade war effect on Bitcoin Price

      • Crypto Market
      • Guide
      No Result
      View All Result
      ItsBlockchain
      No Result
      View All Result
      Home bitcoin

      Japanese led cryptocurrency bubble

      Hitesh Malviya by Hitesh Malviya
      May 25, 2017
      in bitcoin, Cryptocurrency
      0 0
      0
      cryptocurrency buuble
      0
      SHARES
      16
      VIEWS
      Share on FacebookShare on Twitter

      Much of the data at Japanese exchanges are not actually available, so I did a bit more digging myself and decided to provide additional evidence and estimates for Japanese investors’ market share in the global market.

      Summary

      1. Coinmarketcap does not reflect the complete up-to-date stats and Japanese exchanges are mostly excluded from the list.
      2. Altcoin trading volume at coincheck is hidden in the Poloniex’s trading volume and the Polo’s seeming dominance can be misleading.
      3. The Japanese exchange Zaif alone would account for 10.5% of global XEM trading if properly listed on coinmarketcap.
      4. Based on my rough estimation, Japanese investors account for 35.2% of global XEM trading and likely more than 40% of global XRP trading.

      Japanese exchanges don’t have any significant altcoin trading volume?

      Looking at popular websites like coinmarketcap.com, there is no presence for Japanese exchanges or JPY trading in general for altcoins. Considering JPY having about 30% of total Bitcoin trading volume and many new Japanese investors hyping about altcoins on social media and more, the numbers don’t add up and something is very off.

      In short, the reason for the seeming absence in the global market is that Japanese exchanges don’t publish stats for altcoin trading and therefore, the true influence of the Japanese market is “hidden” on popular crypto analytics sites. I am going to explain why this is the case and also attempt to estimate the market shares of Japanese investors for XEM and XRP as a reference.

      The relationship of coincheck and Poloniex and why Poloniex’s dominant figures are misleading

      Coinmarketcap suggests Poloniex is the dominant exchange for altcoin trading and while it’s probably true that Polo is still the largest altcoin exchange in the world, the numbers can be very misleading.

      As a matter of fact, Coincheck, the most popular exchange for altcoin trading in Japan, is merely a broker between Poloniex and Japanese investors, providing an interface for JPY trading and buying coins from Polo in the background. Thus, trading volume at coincheck is completely hidden and included in the Polo’s volume, further inflating Polo’s dominance on paper.

      (Users buy altcoins from coincheck as opposed to trade against other users)

      Coincheck doesn’t publish any data for altcoin trading, so it’s not very clear how much of the Polo volume accounts for Japanese traders at coincheck but you should be aware that Polo’s dominant numbers don’t tell the entire story.

      (The relationship between coincheck and Poloniex has not officially been verified but this seems most likely the case and it’s a public secret at this point. The fact coincheck goes down when Polo does is probably good enough evidence)

      Now, even though there is no public data for altcoin trading at coincheck, I’ll attempt to estimate the Japanese market shares for XEM and XRP based on the information I have gathered.

      Calculating Zaif’s market share for XEM trading

      Although coincheck doesn’t provide data for altcoin trading, Zaif, another prominent Japanese exchange, does and we can estimate coincheck’s trading volume from Zaif’s volume as well.

      I gathered data for XEM trading volume at Zaif and Poloniex from May 7th to May 18th and here is what I found(see this spreadsheet for details)

      1. Daily average trading volume of 19,597,627XEM at Zaif (Approximately 4.8 million USD equivalent at the current rate)
      2. Zaif has 16.78% to Polo’s XEM trading volume and would account for 10.5% of the global market share assuming Polo’s global market share fixed at 70%(referring to coinmarketcap’s daily snapshot)
      3. Zaif alone has a significant portion for XEM trading although missing from the global list. (it’s excluded from the list due to no trading fee but it actually charges a small fee currently)

      Now I will try to estimate Japanese market share in the global market, based on the Zaif’s volume as well as some other info I have gathered.

      Estimating Japanese market share for XEM

      (I will start off by making a lot of assumptions from here and the numbers I come up with may be significantly off from the reality but I believe they will still be informative for many)

      I ran a simple twitter poll, asking Japanese investors where they buy XEM. I’m aware Twitter poll is certainly not the best way to collect the most accurate data but here is what I got. (n=843)

      The result “feels” about right and is not far from my own observation of the community, so let’s assume Japanese investors’ trading volume is equally split between the three exchanges.
      (Serious traders tend to use Poloniex, so the average volume per person is likely higher there than at the other two exchanges)

      Based on that assumption, here is what I found (see the spreadsheet for how I came up with them)

      1. Daily average XEM trading volume by Japanese investors (Zaif, coincheck and Poloniex) are estimated to be 52,520,240 XEM (approximately 14.4 million USD equivalent at today’s rate)
      2. XEM market share by Japanese investors in the global market would stand at 35.2%.
      3. This is more or less inline with the Bitcoin-JPY trading market share although I’d initially expected it to be even higher (close to 50% of the global volume)

      Estimating Japanese market share for XRP

      Unfortunately, Zaif doesn’t list XRP, so I cannot employ the same strategy to estimate XRP trading volume by Japanese investors. However, assuming the Japanese XEM market share is 35.2% and taking account of popularity of XRP in Japan, I’d guess the Japanese market share for XRP would be even higher than that of XEM. I cannot really give an accurate estimation here but it should lie somewhere between 40% and 50%.

      Also, note that during the past few days, as the XRP price has dropped, XEM price has gone up significantly, coincidentally or not. If anyone is interested, researching the correlation between the XRP and XEM prices may discover interesting stats and further support my theory of Japanese-caused cryptocurrency bubble

      Takeaways

      Here are some takeaways from my additional research.

      1. The estimates I gave are rough, but they seem to support the theory of Japanese caused crypto bubble based on my observation.
      2. Coinmarketcap is a great resource but you shouldn’t count on it too much as the source of truth.
      3. Japanese exchanges should do a better job being more transparent and providing more data for the public’s sake in my opinion.

      So, here it is. I didn’t plan on doing this much research on this topic initially but I became very surprised how little people outside Japan understand about the market and how it’s quietly affecting the entire market at the same time.

      I hope my findings will help traders and enthusiasts understand the current landscape better and make more informed decisions.

      Originally published at: https://medium.com/@coin_and_peace/additional-evidence-for-the-japanese-led-cryptocurrency-bubble-2c13ab2a4d49

      IBC-Transparent-Logo-(1)

      Subscribe To Our Newsletter

      Join our mailing list to receive Cryptocurrency investing and trading recommendations to your mailbox.

      You have Successfully Subscribed!

      Tags: altcoincryptocurrency
      ShareTweetPin

      Subscribe to get notified on latest posts.

      Unsubscribe

      Related Posts

      playcent

      Introducing Playcent- Decentralised Wix for interactive apps and games

      by Hitesh Malviya
      December 14, 2020
      0

      Playcent is a blockchain-based user-generated content platform for interactive apps and games. It’s a remix tool that anyone can use...

      RioDeFi Builds a Bridge to India before its long awaited IDO on Uniswap

      RioDeFi Builds a Bridge to India before its long awaited IDO on Uniswap

      by Hitesh Malviya
      September 27, 2020
      0

      RioDeFi’s readying for India with INR banking services for RioDeFi ecosystem & RFUEL token RioDeFi is creating a payments ecosystem that...

      Bitcoin [BTC] Price Analysis – Monthly Returns

      Bitcoin [BTC] Price Analysis – Monthly Returns

      by Nivesh Rustgi
      September 1, 2020
      0

      With the beginning of a new month, the sentiments of cryptocurrency traders are running high with the surge in farm...

      Featured Image

      PrimeXBT – A Smart Platform to Trade Crypto, Forex, and CFD

      by Hitesh Malviya
      August 28, 2020
      0

      Privacy and regulatory restrictions for the trading of certain assets have been a hindrance for crypto enthusiasts for long. The...

      featured image

      Bitcoin [BTC] Price Prediction: Parabolic Fractals from 2019

      by Nivesh Rustgi
      August 2, 2020
      0

      The sentiments around Bitcoin are currently euphoric as the digital investment asset broke above significant resistance levels. In the...

      Load More

      About Us

      We share important articles on blockchain technology here. Our mission is to spread the awareness about blockchain technology to masses through content.

      • Trending
      • Comments
      • Latest
      featured image

      List of leading partners of Ripple, and How they use XRP?

      May 2, 2020
      featured image

      List of ChainLink Partnerships which skyrocketed the growth of LINK cryptocurrency

      May 12, 2020
      How to Buy Cryptocurrency in China

      How to Buy Cryptocurrency in China

      February 17, 2020
      featured

      A starter guide to Bitcoin Options trading

      July 6, 2020
      featured image

      Top 10 Low market cap altcoins to invest in 2020

      June 2, 2020
      Find an Altcoin Bottom

      How to Find an Altcoin Bottom and Uptrend

      April 30, 2020
      binance exchange safe

      How Safe is Binance Exchange

      August 21, 2020
      playcent

      Introducing Playcent- Decentralised Wix for interactive apps and games

      December 14, 2020
      RioDeFi Builds a Bridge to India before its long awaited IDO on Uniswap

      RioDeFi Builds a Bridge to India before its long awaited IDO on Uniswap

      September 27, 2020
      Bitcoin [BTC] Price Analysis – Monthly Returns

      Bitcoin [BTC] Price Analysis – Monthly Returns

      September 1, 2020
      Featured Image

      PrimeXBT – A Smart Platform to Trade Crypto, Forex, and CFD

      August 28, 2020
      featured image

      Bitcoin [BTC] Price Prediction: Parabolic Fractals from 2019

      August 2, 2020
      featured image

      Top 10 Staking Coins Everyone Should Know About

      July 26, 2020
      featured

      4 Interesting Ways Blockchain Technology Impacts Higher Education

      July 21, 2020
      • featured image

        List of leading partners of Ripple, and How they use XRP?

        137 shares
        Share 137 Tweet 0
      • List of ChainLink Partnerships which skyrocketed the growth of LINK cryptocurrency

        55 shares
        Share 55 Tweet 0
      • Top 5 DeFi Crypto Projects

        52 shares
        Share 52 Tweet 0
      • Top 10 Low market cap altcoins to invest in 2020

        20 shares
        Share 20 Tweet 0
      • Bitcoin lost 4.5 years old support, drop below 3000$ possible

        124 shares
        Share 124 Tweet 0
      ItsBlockchain

      We are India’s first and oldest Blockchain & Cryptocurrency publication platform started in 2016. We are a one-stop destination for technical analysis, cryptocurrency recommendations, and Blockchain technology resources.

      Buying Guides

      • Buy Bitcoins in India
      • Buy Bitcoins in China
      • Buy bitcoins in Russia
      • Buy Bitcoins in Japan
      • Buy Bitcoins in Turkey

      Important Links

      • Home
      • About US
      • Privacy Policy
      • Promote Your ICO
      • Submit post

      Follow Us

      Contact us

      support@itsblockchain.com

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      No Result
      View All Result
      • About US
      • Home
      • Newsletter
      • Privacy Policy
      • Promote Your ICO
      • Submit post

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.