NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

99% of Ethereum, Litecoin, EOS Volume is Likely Fake: Report

Yashu Gola
Yashu Gola
5 years ago
2 mins read
bitcoin, cryptocurrency, ethereum, EOS, litecoin

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

A new report is casting doubts on the legitimacy of top bitcoin rivals’ trade data.

Researcher Koji Higashi late last week blasted off exchanges for faking 99 percent of their Ethereum, Litecoin, and EOS trade volumes. The Japan-based cryptocurrency analyst noted that the degree of fake volume in the altcoins appeared more severe than the one in bitcoin.

ethereum, bitcoin, cryptocurrency
Ethereum climbs 18 percent after witnessing a massive drop past mid-2019 | Source: TradingView.com, Coinbase

The study followed impressive price rallies in the altcoin market. Etheruem, whose token ‘Ether’ remains the second-leading cryptocurrency by market cap, climbed by 20 percent after bottoming out at $116.25 last December. EOS, too, surged by 26 percent while Litecoin was up by 25 percent.

But, according to Mr. Higashi, traders may have been taking cues from the altcoins’ trade volumes before opening their bullish positions. Volume remains one of the major breakout indicators.

“In other words, tracking reported trading volumes might give you a wrong impression and can inflate expectations for altcoins,” Mr. Higashi asserted.

Bitcoin Domination Higher than Reported

The claims were a part of a broad analysis focusing on bitcoin’s real trade data. Mr. Higashi admitted that he was focusing on the benchmark cryptocurrency’s volume against fiat currencies as well as top altcoins. He used CoinGecko, a portal that analyzes exchanges’ data for their legitimacy, to filter out fake volumes from genuine ones.

The strategy allowed Mr. Higashi to conclude that 95 percent of the total reported bitcoin volumes are fake. Meanwhile, pitting the cryptocurrency against the top 30 altcoins (excluding stablecoins and exchange tokens) further revealed issues in the latter’s data.

bitcoin, cryptocurrency, ethereum, EOS, litecoin
Bitcoin trade volume against top 30 altcoins | Source: The Startup

So it appears, the net true bitcoin-enabled volume came out to be 10,000 BTC (approx $70 million) on average. At the same time, the nominal volume was 2,600,000 BTC (approx $18 billion). That showed that about 97 percent of total reported data was more or less the outcome of wash trading.

“After eliminating fake volume, Bitcoin’s market dominance becomes even more obvious,” wrote Mr. Higashi. “Against the top 30 cryptocurrencies, the true liquidity market share for Bitcoin is about 70% vs nominal market share of 50%.”

China’s Dominance

Bringing stablecoin into the report further revealed China’s shocking control over bitcoin trades. Mr. Higashi claimed that the region hosted more than half the cryptocurrency’s fiat-enabled trades. That included a troubling amount of trades for/against USDT, a controversial stablecoin.

True, fake volume is a serious problem in crypto industry.

In search of Bitcoin’s true trading volume; altcoin volumes are inflated more and China dominates by @Coin_and_Peace in @thestartup_ https://t.co/0KjcW0rq66

— 三原 弘之 Hiro Mihara CEO at Cygnos(シグノス) (@h3hara) January 7, 2020

China’s trade war rival, the United States, controlled just 20 percent of the bitcoin’s net market share, followed by Japan and Europe, which had access to only 10 and 5 percent, respectively.

US regulators have practiced a cautious approach while legitimizing cryptocurrency investments for retail and institutional traders. The SEC highlighted the risk of price manipulation in global bitcoin markets as the core reason for rejecting applications of several bitcoin-enabled exchange-traded funds. Chairman Jay Clayton said in November:

“What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation.”

Tweet123Share196ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Whales Are Loading Up on Chainlink (LINK), But Retail Investors Are Still Missing the Signal

Whales Are Loading Up on Chainlink (LINK), But Retail Investors Are Still Missing the Signal

Chainlink (LINK) is trading at $13.36, following a 3% drop in the past 24 hours, which places the altcoin approximately...

Samuel Edyme 5 hours ago
XRP

XRP’s Time Is Now, Says Pundit—Don’t Snooze On The ‘Biggest Transfer Of Wealth’

Proponents of XRP are stepping up their pitch this week, calling the token “one of the greatest wealth transfers in...

Christian Encila 6 hours ago
Ethereum

Ethereum Price Targets $3,000 As Analyst Calls It A ‘Powder Keg’

The Ethereum price is flashing major upside signals as on-chain and market activity align toward a potential breakout to the...

Scott Matherson 7 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

BTC, Bitcoin

Bitcoin Near Historic Weekly Close Despite Drop – Analyst Warns Of Volatile Weekend

Rubmar Garcia 1 hour ago
ethereum

Ethereum Approaches Wyckoff ‘Liftoff’ Phase – Can ETH Reach A New High?

Ash Tiwari 3 hours ago
Giełda krypto Bitunix laptop interfejs

Giełda Bitunix integruje TradingView. Nowy lider na rynku krypto?

News BTC 4 hours ago

Premium Sponsors

Press Releases

  • 仮想通プレセール注目:リップルが米銀行ライセンスを申請、機関投資家の関心が急上昇中

    ...

    16 hours ago
  • 仮想通貨おすすめ:話題の新トークンがプレセール開始直後に15万ドルを調達

    ...

    17 hours ago
  • 新しい仮想通貨:ソラナ系取引ボットが話題のプレセールで150万ドル調達、次の100倍候補か?

    ...

    17 hours ago
  • 仮想通貨おすすめ|米下院が大型法案可決、7月4日にビットコインが急騰

    ...

    17 hours ago
  • ミームコイン急騰中|Solana発の人気銘柄続々高騰、新たな注目トークンも登場か?

    ...

    17 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

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