Huobi's market share crumbles in the middle of the USDD departure

Huobi's market share crumbles in the middle of the USDD departure

The crypto exchange based on the Seychelles-Huobi Global-has been in difficulty for some time, which has led to it that it has lost considerable market shares. The company was involved in controversy because it had allegedly closed internal communication and feedback channels and painted various social benefits. Its market share is also threatened by competing companies.

According to the latest study by the data provider Kaiko, Huobi's market share went back from 22 % in 2020 to only 4 % by the end of 2022, making it the largest loser in the crypto bear market. Also the quarterly turnover of Huobi Fell since 2021 Q2.

huobi in difficulties

The crypto industry still faltered after the spectacular fallout of the FTX empire, and the community is concerned about further disadvantageous developments for other top-class participants. Huobi also experiences a crisis of confidence.

In the past week alone, due to bankruptcy concerns, it recorded drainage of more than $ 100 million in token outflows. Tron founder Justin Sun, who is a main shareholder of the crypto exchange, has transferred USDC and USD with a total of around $ 100 million from Binance to Huobi to strengthen trust.

The USDD depege also turned out to be an Achilles' heel for the crypto empire of Sun. For comparison: USDD, issued by the Tron Dao Reserve, aims to stabilize the exchange courses for stable coins that are output on the TRX blockchain. The depet was triggered by the collapse of the FTX and has been moving further under the $ 1

Although it is claimed that USDD is underlaid in combination with Tron, Bitcoin, USDC and USDT with a collateral rate of over 200 %, it has not regained its bond. At the time of writing this article, USDD acted by $ 0.97

kaiko's research showed:

"If we look at the order books of USDD-Unddt, the trading couple with the highest volume, we can observe that the market depth on the money and letter page has been continuing since the beginning of December."

rising fud

It was also found that the ratio of offers on inquiries was most of the past month below 1, a trend that indicates a strong sales pressure that pulls the price down. The relationship has improved slightly since the beginning of the year, with the BID/ASK ratio climbing over 1, which indicates that more commandments were placed in the order books.

A change in the current mood is only prompted if a shift in the order book structure emerges. In fact, Kaiko's research showed that the USDD can still regain its bond. However, this is not the case for Huobi, which is still faced with a "hard challenge in the recovery of market shares".

Sun recently confirmed that Huobi had to reduce his workforce by 20 % in order to cope with the increasing losses. The stock exchange is subjected to a “structural adaptation” that is expected to be completed by the first quarter of this year.

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