Bakkt, having been criticized for low Bitcoin Futures contract volume in its first few weeks of existence, has seen a significant boom overnight as the platform hit a new all-time-high for traded contracts.
On Wednesday, the exchange had some 224 BTC in volume just a day after it had posted an all-time low of 25 BTC traded bucking the belief that the platform was tapering off. This is a big step in the right direction for the platform that has been heralded as a potential institutional game-changer.
A look at the daily trading graph, provided by Bakkt volume bot shows the dramatic increase which is made to look even bigger by the low volume seen the day before. The increase from the all-time-low to the all-time-high is 796 percent.
It is uncertain what caused the sudden leap in the uptake of these physically settled contracts, however, it is pertinent to note that Bitcoin’s own price took a decent price bump of about $400 to break the shackles of the lower reaches of the $8,000 mark.
That being said, if this was the catalyst for additional contracts, it would not be good news for the adoption of this platform as rather than people seeing benefits in the new institutional platform, they would rather be attempting to profit on the fluctuating price.
If Bitcoin can continue to regain its value and volume, then there may be an onramp for the Bakkt platform to pick up additional steam. However, if the price goes back to dropping, and falls even lower than $8,000, it could be conceived that interest in these Bakkt contracts will fall even lower.
While Bakkt is chugging along, with many eyes on it, it would be fair to say that thus far, it has not lived up to the hype. Many saw the launch of this bridging product between cryptocurrency and institutional trading – with access to physical Bitcoins – as the opening of floodgates to new money.
However, the trading volume has been decidedly unimpressive, especially when compared to the volume that is trading on an exchange like CME. CME has the benefit of being around since the end of 2017, and thus, it may be fairer to judge Bakkt once it has more time to become established.