Poloniex used to be one of the biggest altcoin trading platforms in the world. Today, it continues to lose traction at an alarming rate.
In fact, a report by Coin Metrics paints an incredibly bleak picture where this exchange is concerned.
Poloniex Continues to Lose its Appeal
The number of users is dwindling, and so is the amount of funds entrusted to this company.
The past few years have been very rocky for Poloniex.
Multiple acquisitions, an aggressive spin-out, and Justin Sun’s involvement have caused numerous highs and lows for the company.
Despite some very aggressive marketing by Sun, it appears that most people will rather stay away from this exchange altogether.
On-chain BTC holdings by the exchange have reduced significantly.
This is not because of a lack of overall trading options, but simply because people flock to very different trading platforms.
Recovering from this decrease in volume and overall interest will prove very challenging, to say the very least.
While the acquisition by Circle was considered a boon, it introduced the overall decline in Poloniex’s holdings.
Ever since, things have only gone downhill even further, with no real improvement in sight.
When a trading platform fails to maintain traction and even regresses, it is often a sign of an impending closure.
The new investors in Poloniex will not like the findings of this report, but there isn’t much they can do about it.
Image(s): Shutterstock.com