The income generated by cryptocurrency exchanges from fees has been growing exponentially, reaching up to $3 million per day for the top operators, said Nauticus Exchange, citing data from Bloomberg.
Estimates by Indian tax officials suggest the amount is even larger, with the aggregate annual revenue of the world’s top 10 cryptocurrency exchanges put at some $6.25 billion.
Nauticus said it had surveyed some of the major exchanges and found that revenues continue to climb at a fast pace. Binance made $7.5 million in the first three months after its launch in 2017, but its income quickly jumped to more than $40 million from monthly transaction fees by March this year. Growth was brisk despite Binance introducing a 50% trading fee discount, Nauticus noted, going on to add:
“Huobi has half the volume but makes even higher profits due to higher fees — around $54m a month. Even Kucoin is making $1.8 million a month.”
Nauticus stated further that these exchanges reaped huge profits even before taking into account the exorbitant fees they charge to list new coins. A report by Business Insider indicated that they charge from $50,000 to $1 million to allow new coins to be listed. The amount varies depending on the popularity and size of the exchange. Binance is reportedly charging $350,000 to $1 million, according to the report.
Nautics added:
“Exchanges have also seen spectacular growth in their home brand coins. KuCoin Shares, which launched in September, increased by 2,738% to its all-time high. The Huobi token increased 64% to its peak despite launching in challenging market conditions in February. But the all star performer is the Binance Coin which offers a 50% reduction in trading fees. It increased more than 22,000% to its all-time high and is currently 12,000% up on launch. It’s made everyone who invested in the Binance ICO very wealthy.”
Binance aims to overtake Coinbase
Buoyed by its success and probably its massive cash pile, Binance announced late last month it planned to capture the market share of rival Coinbase.
With more than 10 million active users and over $1.7 billion in daily cryptocurrency trading volume, Binance is aiming to the world leader in all aspects of the digital currency trade.
This article appeared first on Cryptovest
