Trading volume…the simple answer is trading volume. Jens Nordvig, a stock market strategist recently expand that the trading volumes that cryptocurrency is seeing right now could “soon surpass” that of Apple Inc….you know, the makers of the iPhone X. But why compare it to Apple? The stock is the most traded company stock in the market today.
Nordvig is the founder and CEO of Exante Data and said, “Cryptocurrency trading volume is now more than of $3bn/day on average, and will likely soon surpass that of the world’s most liquid stock: Apple ($4bn/day).”
Apple Inc shares trade each day with about four billion dollars in currency, which makes it the most liquid company stock. And as CNN recently reported, cryptocurrency trading volume hit a 24 hour record of eleven billion dollars.
However, it isn’t happening immediately as the thirty day rolling average is closer to the three billion dollar mark right now. This is due to the instance that volume always declines on the weekend. Within the past periods of time, volume would only reach about two and a half billion dollars and bitcoin was the main currency that would end up surpassing the half a billion dollar mark.
Needless to say, Nordvig isn’t ready just yet, to jump into the cryptocurrency pool. He said, “We do not believe that one can predict with confidence at this point that any given cryptocurrency will continue to thrive and gain status as an alternative to traditional currencies in the long term…But we look forward to using the information from an increasingly active cryptocurrency market in our tracking of global capital flows, when appropriate.”
With valuation and trading volumes rising each week, it wouldn’t come as a surprise if his prediction came true. It just comes down to the interest that people have outside of traditional markets.