Liquidity in a cryptocurrency exchange is essential for fair price discovery. It further signifies confidence that the exchange commands amongst its users.
MEXC has consistently performed well in this aspect. Even during the worst month in 2022, according to crypto trading volumes, MEXC has outperformed its competitors by huge margins.
Importance of Exchange Liquidity
Exchange liquidity is the sum of trading volumes on an exchange over a certain period. It signifies the number of traders and the total worth of assets transacted in an exchange. A higher number of traders would mean unfair traders cannot manipulate prices.
Further high exchange liquidity means you can buy or sell your assets anytime. This factor is crucial when you instantly need funds to buy better assets or for other personal reasons.
But how to analyze exchange volumes?
You can gauge exchange volumes monthly and daily basis. A good exchange must have consistent trading volumes over the entire month.
Further, the daily trading volumes should also be sufficiently high. We have also chosen the day of Halloween (October 30) for analyzing daily trading volumes because, on a global holiday, people are less likely to trade. The lowest trading volume is expected on this day. If you get good volumes even on this day, it shows that the exchange can be relied upon on any day of the year.
Keeping these things in reference, we found that MEXC ranks consistently in all categories, such as spot trading, derivatives trading, or perpetual futures. We have provided ample data to support this view.
What is MEXC?
MEXC is a global cryptocurrency exchange with over 7 million users and offers multiple cryptocurrency assets on its platform. It is one of the few cryptocurrency exchanges that ranks consistently high among top crypto-asset categories such as Spot, Derivatives, ETFs, and Perpetual Futures.
Consistent Volumes Despite Worst Month
Crypto Winter has erased many investors’ wealth. The rate hikes by the US Federal Reserve seem to have negatively affected the inflow of funds into cryptocurrencies. The exchange volumes are also at a year low. October recorded the lowest exchange volumes of about $500 Billion in 2022.
Monthly Volume Data
It is important to note that last year, in October 2021, the total exchange volume was $1.3 Trillion, which was 2.5x times the current exchange volumes. This figure summarizes the extent of damage caused by bear markets.
Furthermore, compared to the previous month, crypto volumes have shrunk by more than 30%. In September 2022, exchanges noted a volume of 733 Billion. In October 2022, we saw this figure further drop to about $510 Billion. The graphics below represent the diminishing monthly volumes since Nov 2021 last year.
Even during this worst month of 2022, i.e., October, MEXC ranked second in several volume rankings, especially in perpetual futures. The exchange reported a nearly $76 Billion trading volume. See the graphical data below.
Over this period of October 2022, MEXC reported a $40.81 Billion derivates trading volume and ranked 8th among all exchanges worldwide.
According to the Spot Volume data, MEXC ranked 5th in October 2022 with $24.02 Billion in volumes and a market dominance of 4%.
Daily Volumes Data on October 30, 2022
Despite this crashing market, the MEXC exchange ranks consistently at the top on a daily basis in spot, margin, and perceptual futures trading volumes. On October 30, the perpetual futures had a daily volume of $9.1 Billion, ranking 4th amongst all global exchanges. Spot volumes ranked MEXC 6th on October 30, 2022, with a daily trading volume of $2.7 Billion.
Conclusion
Exchange liquidity is essential for several reasons, such as getting better prices and the ability to buy and sell at all times. MEXC provides high liquidity and ranks consistently high in trading volumes in Spot, Derivatives, Perpetual Futures, and other categories. Despite the worst month and even a global holiday, the volumes are sufficiently high.
