The Huobi crypto exchange is finding itself on unsteady ground in terms of reserves and trading volumes. Both have been in severe decline, putting further pressure on the Seychelles-headquartered cryptocurrency exchange.
On July 5, prominent crypto analyst Will Woo highlighted the state of things at the Huobi exchange, and they don’t look pretty.
Huobi Exchange on The Rocks?
Charting guru Woo said that 2013-registered Huobi was in a bad place, comparing the exchange to a “train wreck.”
“Huobi exchange looking like it’s a slow-moving train wreck, nearing its final throws.”
Woo noted that collateral has been draining from the embattled exchange since 2020.
He reported that Huobi’s Bitcoin balance was down from 410,000 BTC in 2022 to just 26,000 BTC left this week. This represents a whopping 93.6% decline in BTC exchange reserves.
Ethereum and Tether (USDT) balances were also “flat lining,” he added.
Woo also reported that web traffic and engagement for Huobi has plummeted. From over 30 million visits in March, the figure has fallen 76% to 7.2 million website visitors in May.
As global regulatory pressure mounts, the exchange has been forced out of several countries. Woo reported that most of its visitors are now from just four countries.
“Huobi’s top web traffic is now via Russia, India, Korea, and Ukraine. It’s been forced to shut down in many jurisdictions due to non-compliance.”
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According to CoinGecko, Huobi is ranked eighteenth in terms of daily volume, which it reports to be $368 million. It also reported that Huobi has 608 tokens and 722 trading pairs, the top being BTC/USDT, with 27% of its total volume.
HT Price Outlook
The exchange’s native HT token has taken a minor hit on the day. As a result, it was trading at $2.71 at the time of writing.
HT has not rallied alongside the broader crypto market, instead slumping 6% over the past month and almost 25% over the past three months.
Moreover, HT is way down from its peak, languishing 93% off its May 2021 all-time high of $39.66.
Exchange tokens have been hit hard recently as the U.S. Securities and Exchange Commission has labeled them all as securities.