The first quarter of 2020 will go down as one for the history books in terms of the volatility that was seen across the markets. But, even with a steady start to the year, and a massive meltdown attributed to Covid-19 induced market panic in March, Huobi has still seen remarkable trading volume increases.
The year began with promise as Bitcoin recorded its best January performance for seven years, but March brought with it a substantial fall in the cryptocurrency market that was tied back to the Covid-19 impact on the world’s markets and economies.
However, the ever-resilient cryptocurrency market has bounced back, and amid this torrent of volatility Huobi has recorded an increase of 78 percent in aggregate trading volume for the first quarter of 2020, as compared with the fourth quarter of 2019.
The hunger for trading is still quite prevalent, and as if to highlight this as a general trend and one not too aligned with the market collapse, month-on-month aggregate trading volume on Huobi only fell 6.28 percent from February to March.
Huobi Token Burn increased 14.7% from Feb. to March
Despite a slight drop in month-on-month aggregate trading volume in March, Huobi burned 14.7% more tokens than it did in February. This amounts to 4.83 million HT. Overall, as of April 15, the total number of HT burnt has reached 202.3051 million.
Burning tokens in this manner is one way to lower inflation. Currently, the deflation rate of the Huobi Token stands at 1.54 percent.
March Review and Future Plans
March, despite the massive market collapse, was a busy one for Huobi with Huobi DM (Derivatives Market) proudly launching its Perpetual Swaps product on March 27. Huobi DM now supports perpetual swaps for seven trading pairs in BTC, ETH, BCH, BSV, EOS, LTX, and XRP currently, with more to come soon.
Huobi Token was also taken up by Game Service and its trading platform G5Game which has 10 million registered users and about $710 million in annual trading volume, for accessories transactions.
C2C (Customer to Customer) lending service began internal testing with Huobi and our recommendation is for users to contact customers services to try it out.
Huobi DM (Derivatives Market) also started providing low-risk customers with collateralized Huobi Token loans for contract assets, and this is progressing well having opened to some market makers and VIP users.
Huobi futures contract launched a Partial Liquidation Mechanism, helping users to reduce full liquidation risk. The new Tiered Adjustment Factors has been live with five tiers of adjustment factors.
Huobi Global also launched the HT/IDR trading pair to attract more users from Indonesia into the Huobi Token ecosystem.
Huobi’s mining division, Huobi Pool, published its ‘Development Report of 2019’ with operating revenues of $320 million (USD), up 549% in 2018. The PoW and Staking has been the primary drivers.
Loom Network added Huobi Token payments. As an infrastructure platform based on Ethereum, LOOM allows developers to accept Huobi Tokens in exchange for LOOM DApp services.
The Huobi Token website will be getting an upgrade in May. Users can learn about all content relevant to Huobi Token on the main page.
Finally, Huobi Chain, which is adopting HT as its primary ecosystem token, has launched the testnet following the completion of underlying development, including consensus, P2P network, and account models. The developing team is working on the performance and stability tests while continuing to develop its core functions – smart contracts, cross-chain mechanisms, SDKs and blockchain browsers. Due to the impact by Covid-19, the development, security audit and test shall be completed in the third/fourth quarter of 2020 to successfully launch the mainet, a slightly delayed schedule than we predicted.