Last week, crypto exchange Poloniex was “spun out” from the Goldman Sachs-backed Circle into its own, international brand, highlighting a lack of interest in the digital asset trading platform.
A new data visualization is making way across the web, shows how Poloniex has fallen from grace over the last 5 years, and how during this time, Binance was able to take the platform’s leadership position.
Poloniex and The Lost Throne of Crypto Trading
As industries grow, the companies within each industry need to evolve to stay ahead of market trends and ensure customer loyalty and satisfaction. Without regular improvements, companies risk letting a competitor take valuable market share that may be difficult to win back.
Such as the case with Poloniex, a cryptocurrency exchange that five years ago, was the clear market leader in terms of overall crypto trading volume. But over the years, Poloniex lost its edge, for one reason or another, and competitors were able to steal market share that they were never able to recapture.
The entire five-year process can be seen in a new data visualization shared by Managing Partner at Blocktown Capital, James Todaro. The video embedded in the tweet below clearly demonstrates how trading volume on Poloniex declined over the years, allowing the likes of Bitfinex, Bittrex, Coinbase, and Kraken to take over.
After >5 years of active trading and what was once the largest exchange, Poloniex now shuts its doors to the US.
Here is the shifting landscape of cryptocurrency trading volume resulting in @binance domination.
What will it look like by 2021? pic.twitter.com/McfR6oBKLb
— James Todaro (@JamesTodaroMD) October 21, 2019
The ongoing decline in interest in trading on Poloniex may have been part of the reason for the Boston-based Circle to offload the crypto exchange, just a year and a half after acquiring the platform for a sum of $400 million.
Binance Becomes King In Just Two Years
Eventually, Binance explodes on the market in late 2017, and in no time at all becomes the clear market leader in terms of overall crypto trading volume across all platforms in the data visualization.
Binance serves as a perfect example of what happens when companies within an industry don’t evolve and adapt along with the market, and allow a competitor to take over. The crypto platform quickly became the poster child for the emerging industry and has launched a number of innovative products that have forced the competition to step up their game.
Related Reading | Binance Turns Two: A Look Back at The Young Crypto Unicorn
Binance’s stronghold only continues to grow, even despite ushering the largest sub-set of traders by region away from their flagship website and onto a US-based exchange that features far less of the exotic altcoins that put Binance on the map.
Poloniex also just revealed they are following suit and barring US investors from making trades on the platform, but Poloniex is no longer a market leader, and won’t rebound the same way Binance has.
The post Crypto Visualized: Watch the Fall of Poloniex And Rise of Binance appeared first on NewsBTC.