It looks like Bitcoin investors are not the only ones profiting from last year’s “Cryptocraze” as the top 10 Digital Currency exchanges are pulling in millions of dollars per day.
Bloomberg, one of the biggest providers of financial news, recently updated the revenue stats of the top 10 cryptocurrency exchanges and found that they average roughly $3 million per day and will most likely make over $1 billion this year.
The best part too is that only the lowest fees charged by these exchanges were used to ascertain these numbers.
Impact Of The Boom
The above numbers are nothing to scoff at and while they cannot be gauged to the last penny, the rough estimates do give a clear indication that as long as there are digital coins being traded throughout the world, there will be exchanges to profit from those trades.
Most of the revenues are being driven by the fees these exchanges charge on each and every trade plus additional fees like withdrawal fees that help to increase the bottom line.
The top two revenue-producing exchanges in the world have come from Asia, which should be no surprise as more than half of digital currency trades come from that part of the world.
Binance Exchange, located in Tokyo, and OKEX exchange, located in Hong-Kong, both generate over $1 billion per day in trading fees. This staggering statistic is even more impressive when considering that Binance only charges .2% and OKEX a paltry .07% for trading.
Time To Celebrate By Slashing Fees
In order to celebrate the increasing revenue, many of the top cryptocurrency exchanges have decided to pass on some of their good fortune to their customers. Binance, along with two other major cryptocurrency exchanges, in particular, have reduced their withdrawal fees just last week by almost 50%.
It costs money to send and withdraw from any exchange to both a wallet or another exchange, and while sending bitcoin and other popular cryptocurrencies is relatively cheap (approximately 30 cents per transaction) withdrawing the coins are relatively expensive (around $10 per withdrawal).
This is exactly why investors are rejoicing in these massive cuts as they can now withdraw their money from many of the major digital coin exchanges for almost half the price they used to pay ($5.70 at the time of this writing).
Although a highly-profitable business model is one of the main reasons for the recent reduction in withdrawal fees, Segwit and batching technology have also helped reduce overall costs and therefore further increased many of the biggest digital coin-based exchanges’ overall bottom-line.