Blockchain Review 2023: WEEX、MEXC with super trading volume
On August 18, 2023, Bitcoin witnessed a significant decline of 7.33% within a span of 24 hours, displaying a high level of volatility at 12.59%. This event marked it as the most severe day in the crypto market since the beginning of the year, resulting in liquidations amounting to a total of 1 billion USD. Referred to as the "818 Tragedy," this occurrence bears similarity to the "Crypto Lehman Moment" in November of the previous year when FTX's collapse shattered industry confidence, causing Bitcoin to experience declines of 9.93% and 14.15% on November 8th and 9th, respectively.
In comparison to the November incidents, which were characterized by unforeseen events and widespread fear, uncertainty, and doubt (FUD), the downward spiral on 8.18 seemed somewhat inexplicable. There were no major negative news or data releases, and it did not coincide with significant happenings such as futures expirations or central bank decisions. The stock market maintained a relatively uneventful state, with varying movements in the three major U.S. indices. The only notable bearish news was the court's dismissal of allegations made by six plaintiffs regarding the U.S. Treasury's sanctions on the privacy protocol Tornado Cash from the previous year, deeming it an overreach. However, this had limited impact on the industry. Some analysts attributed this plunge to the liquidation of long futures, but such an explanation seemed counterintuitive.
Regardless of the reasons behind the crash, objectivity is key in the market, and resilience is essential when faced with adversity. When impacted by the market, one must stand firm and take the opportunity to review and learn from each liquidation experience, using them as stepping stones on the path to discovering the Holy Grail of trading.
Trading success depends on various factors, including trading discipline, analytical abilities, market intuition, and luck. Additionally, the trading depth of a platform plays a crucial role, particularly during extreme market conditions like the "818 Tragedy." Platforms with ample depth can maintain relatively stable prices when handling substantial orders, preventing excessive fluctuations. Conversely, platforms with limited depth are susceptible to being overwhelmed by large unidirectional orders, such as futures liquidations, resulting in slippage and potential liquidations.
Inadequate trading depth leads to significant slippage, posing challenges for users aiming to buy at low prices or short at the peak, as executing trades at desired prices becomes challenging. This can result in missed opportunities or executed trades deviating significantly from the ideal price, potentially turning profitable strategies into losses. Therefore, when selecting a platform, users should consider trading depth alongside factors like overall strength and security.
WEEX, a renowned platform, is known for its impressive trading depth and has now earned a place among the top tier of global exchanges. It currently ranks sixth in CMC's global average liquidity ranking. WEEX's order book thickness and spread surpass those of most other trading platforms, closely trailing behind Coinbase and Binance. Such strengths minimize trading costs and liquidity risks for professional traders and high-frequency trading users, receiving recognition from the community.