Crypto exchanges report uptick in user registrations, trade volumes as coronavirus pandemic batters the global economy

The coronavirus pandemic has pushed global markets into a state of shock – but major cryptocurrency exchanges appear to remain unaffected.

Seven crypto exchanges The Block spoke with – including centralized, decentralized and peer-to-peer (P2P) marketplaces – said they have witnessed increased user numbers and trading volumes since the pandemic started escalating.

"We've seen a significant uptick in sign-ups and a 300% increase in verified accounts," Dave Ripley, chief operating officer at Kraken, told The Block. Ripley did not disclose specific user numbers, but said Kraken currently serves "millions of clients around the world."

OKEx has also seen "steady" growth in its user base, CEO Jay Ho told The Block. "Especially during early-March, we recorded an estimated 1.7% boost globally."

OKEx currently serves around 20 million users globally, with the highest trading volumes now coming from France, Russia, Thailand, Korea, and Singapore, Hao told The Block, adding that these regions "have been quite outstanding recently."

Non-custodial or decentralized crypto exchange KyberSwap has also seen growth across its key metrics. Sunny Jain, KyperSwap's head of product, told The Block:

"Total users, active users, trading volume and trade size are all on the rise. Interestingly, in March, we have seen great results. For example, the trading volume has shot up by more than 3x. The U.S., China, and Australia remain top countries, but we have seen growth coming from almost every country."

Bitfinex also witnessed a 30% increase in new accounts within the second half of March, when strict lockdown policies were imposed in many countries, COO Claudia Lagorio told The Block.

P2P crypto exchange Paxful also said it has seen a surge in volumes and users.

“Our new registrations spiked by more than 27% in March. Most of our major markets have surged in terms of volume in March,” Paxful CEO Ray Youssef told The Block, adding that the total number of registered accounts currently stands at more than 3 million.

Gemini and Bitstamp said they have seen growth in users and volumes in recent months.

Binance, Coinbase and BitMEX declined to comment when reached, while Huobi, Deribit and Uniswap did not return queries by press time.

The Block's research shows that crypto trading volumes increased by 22.4% in March and reached a 9-month high. The volume on legitimate exchanges, according to The Block 22 Index, was about $116.6 billion in March – the second-highest monthly volume since January 2019.

Source: CryptoCompare, CoinGecko, The Block Research 

Operations unaffected

The pandemic has forced many companies around the world to adopt work-from-home (WFH) culture, and crypto firms are no exception. But that hasn’t affected their key operations, exchanges say.

Kraken’s Ripley said the exchange has seen "zero interruption" in operations since it has been a "remote-first" workplace since its inception in 2011.

"We have not been dealing with transitioning to a digital workforce during this time like many other companies. Our IT systems, operational procedures, mode of collaboration and communication are all built remote first," Ripley told The Block.

Bitfinex personnel’s productivity also remains unaffected, Lagorio told The Block, adding: "We are resilient in these very challenging times."

Gemini said the firm has utilized a flexible work-from-home policy and had recently tested its "robust" business continuity plan, which made the transition easier without impacting business operations.

OKEx's Ho also told The Block that the exchange implemented a WFH policy around mid-January – when coronavirus began outbreaking in Asia. "Workflow impact is at a minimal circumstance," he said.

KyberSwap’s operations remain intact as well. Jain told The Block: "We also managed to release some big updates (fiat on-ramp; limit order user-interface revamp, Torus integration, user portfolio, and smart notifications) during this challenging period."

Future plans

Crypto exchanges say they continue to build products and services despite the difficult global environment.

For example, Gemini reported that the firm will continue to advance its global expansion plans, with a near-term focus on the U.K. and European markets.

OKEx’s chief strategy officer Alysa Xu told The Block that the exchange’s plans revolve around OKChain blockchain and OKB token.

"We aim to develop OKChain in five directions, namely crypto asset issuance, release of DeFi applications, decentralized exchanges building, smart contract execution, and Bitcoin cross-chain development, creating a closed-loop ecosystem that allows all kinds of blockchain projects, DApps, and DEXs to flourish," said Xu.

For OKB, she said the exchange plans to promote the token’s circulation and accessibility. "We will introduce more fiat gateways and use cases in the coming year. Russian Ruble is one of our targets in 2020," she added.

Bitfinex’s Ardoino said the exchange is planning new products related to P2P margin trading and lending.

Bitstamp also said it is working on new features and partnerships. This includes "offering leverage to institutions with Silvergate Bank," as well as continuing expansion in its New York office.

KyberSwap, on the other hand, is focused on "the Katalyst protocol upgrade, KyberDAO launch, and new KNC token model, planned for Q2 2020," said Jain.