Bullish Exchange Saw a 43% Volume Drop — But a Sneaky Spread Trick Nearly Made Up the Difference. Here's What That Means
(56 days ago) · 1 source · Summarized by CryptoBipto — how we make this
Bullish, the crypto exchange that owns CoinDesk, experienced a 43% decline in trading volume over the past year. However, a 72% increase in bid-ask spreads — the gap between buy and sell prices — nearly compensated for the revenue impact of that volume loss. The dynamic raises questions about the exchange's trading environment and its implications for users.
WHY IT MATTERS
Imagine you're at a farmers' market. The 'spread' is the difference between what a seller asks for tomatoes and what a buyer is willing to pay. A small gap means lots of buyers and sellers competing — that's healthy. A big gap means fewer people are trading, so each transaction costs you more. Bullish, a crypto exchange that also owns the news site CoinDesk, saw fewer people trading on its platform (volume dropped 43%), but the cost of each trade went up (spreads jumped 72%), which nearly made up for the lost business. For everyday crypto users, wider spreads mean you're getting a worse deal when you buy or sell. It's a reminder to compare trading costs across exchanges before making trades.
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