The Huobi Token (HT) trading volume has surged dramatically over the last day, by almost 30%, indicating that the token is now on the uptick.
Recent news of significant workforce reductions, mandatory stablecoin salary payments, and the shutting down of internal employee communication channels at Huobi has had a negative impact on the performance of the exchange’s native token and trading activity.
After a company representative disclosed the exchange’s intention to decrease its workforce by 20%, CoinMarketcap data reveals that the value of its HT token has dropped by approximately 11% to a low of $4.33 on January 6th from a high of $5.20 on January 1st.
Nevertheless, despite lots of trouble at the exchange, the token, which had fallen as low as $4.33, has begun to make a slow comeback. According to statistics from CoinMarketcap, it is presently trading at $4.86, up 2% in the past 24 hours.
Huobi Market Shares Drop To Just 4%
Kaiko’s research report reveals that in the past year, there has been a significant shift in the market share among cryptocurrency exchanges. Huobi’s market share dropped dramatically, falling from 22% in 2020 to just 4% in 2022.
The market as a whole has seen consolidation, with Binance emerging as the dominant player in terms of trade volume among both centralized and decentralized exchanges. The largest exchange’s market share rose from 37% in 2020 to 57% in 2022, while OKX’s market share also decreased from 21% in 2020 to 9% in 2022.
Moreover, the report also highlighted that since FTX’s collapse, USDD, the stablecoin produced by the TRON DAO Reserve and hence intimately tied with TRON founder Justin Sun, has been unable to revert to its peg.
This, coupled with token outflows worth $100mn at Sun-owned exchange Huobi due to solvency fears, saw USDD’s value drop from $0.98 to $0.97 on Friday. Sun, however, demonstrated confidence in Huobi by transferring $100mn in USDC and USDT from Binance to Huobi on the same day.
The report states:
While USDD could still regain its peg, Huobi faces an uphill challenge in regaining market share. When looking at the market share of trade volume, Huobi was undoubtedly the biggest loser of the crypto bear market.
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