How Is The HBD Liquidity Doing? | Data On HBD Trading Volume, Liquidity, Top Accounts On The Internal DEX And Other Exchanges
One of the week points for HBD in the past has been the low liquidity. Buying and selling a larger amount of HBD with low slippage, has been a challenge. A larger trade for HBD would mean that the user will either buy at premium or sell at lost.
In the last year the HBD liquidity has been improved. The main driver behind this has been the @hbdstabilizer that has been providing liquidity on the internal market. The funding for the stabilizer has increased in 2022 from under 100k HBD per day, to almost 200k HBD now, and this has increased the HBD liquidity on the internal market. All other external markets can make arbitrage on HBD from the internal market and provide liquidity there.
Let’s take a look how things evolved with the HBD liquidity and has it improved.
Background generated with Midjurney
HBD is known for the low liquidity. It is listed only on two exchanges Upbit and Bittrex. Bittrex has been mostly down and Upbit is for Korean KYC users only. This leaves most of the Hive user base with almost zero options for buying HBD on a CEXs. The most reliable option is the internal Hive DEX, where users can buy HBD with HIVE, then Hive Engine and the pools that the LEO team is building on Cub on BSC.
Here we will be looking at the historical data for liquidity and the trading volume for HBD on the different platforms as:
- Upbit and Bittrex
- Hive DEX
- Hive Engine Pools
For Upbit and Bittrex we will be using the data for Coingecko. Almost all of the trading volume for this data is from Upbit.
For the trading volume on the internal DEX we will be using the records from the transactions recorded on the blockchain, same as for the Hive Engine pools.
The period that we will be looking at is 2022.
First let’s take a look at the liquidity, or the available supply on the different platforms.
HBD Liquidity On Upbit
First the chart for Upbit.
The HBD supply on Upbit has been going down in 2022. Especially in the first half. There was an increase in the HBD supply on Upbit during the summer, when it reached 4M for a short period of time and it has went down since then to 1M HBD at the end of the year.
As already mentioned Upbit is for Korean KYC users only, so a lot of Hivers don’t have access to this exchange and market. On the other hand we have seen that a lot of HBD has exited Upbit in 2022. Upbit is known to occasionally pump the price of HBD, and whenever that happens, more HBD flows to the exchange.
HBD Liquidity On Bittrex
Next let’s take a look at the second CEX where HBD is listed, Bittrex.
Bittrex is not a reliable option for trading HBD as for most of the time the deposits and withdrawals for HBD are closed on the exchange. The HBD supply kept decreasing there from almost 700k to 260k. Its almost symbolic number now.
HBD Liquidity On Hive Engine
Now let’s take a look at the Hive L2.
The Diesel pools on HE has been active for some time and have increased the overall activity a bit.
The HBD supply on Hive Engine has also been in a downtrend during the 2022. At the beginning of the year, it was around 220k and now it is around 90k. I feel like HE can adopt HBD more and provide more pools and trading pairs. For starters a deeper pools for HIVE:HBD and SPS:HBD.
HBD Liquidity On Cub/Polycub
The Leofinance team has experimented with HIVE and HBD derivatives on their defi platforms on BSC and Polygon. They have pooled HBD with other stablecoins like BUSD, that is providing a nice way for trading the token.
Here is the chart.
Note that this might be an incomplete data, as I have only included the @bnb-hbd account.
The light color is the Polycub pools, and the white Cub on BSC. We can see that at first there was a massive increase on the Polycub platform, but then the liquidity there dropped, and has increased on Cub BSC. But overall still a downtrend in the period with a liquidity between 100k to 200k.
HBD Balance In The DHF (@hive.fund)
In theory this HBD is not for sale, but if the price of HBD goes above $1 on the internal DEX, the @hbdstabilizer will start selling some of it on the DEX.
Here is the chart for the HBD in the DHF.
The HBD supply in the DHF keeps growing and now we are almost at 20M HBD. This makes the @hive.fund the biggest holder of HBD. As mentioned not all of it can be used for trading, and in theory the DHF can pay a max of 1% of its holdings per day. The stabilizer asks for 240k HBD daily, and since the budget is around 200k, it receive the maximum minus the sum for the other funded projects.
When we rank the above, we have this.
The @hive.fund is dominant now, followed by Upbit, Bittrex and then Hive Engine. More than a year ago Upbit was no.1, Hive Engine, Polycub and Cub were nonexistent. While these are small pools it is still a step forward in the liquidity for HBD.
The overall trend for 2022 is that the HBD supply has decreased in all pools except for the DHF fund.
Because these funds are used to stabilize the HBD price and the biggest liquidity is now there, it is safe to assume that HBD should keep the peg even better going forward. Of course there is a possibility for a price increase if a lot of volume goes into it in a short period of time. This has happened in the past.
The data above was about the HBD holding on the different platforms where it can be bought. What about the actual trading volume. Here is the chart for the overall daily trading volume for HBD.
We can notice the big spikes at the end of July and in August. Prior to this the daily amounts of HBD trading volume have been in the range from 100k to 500k. But on these days the trading volume has reached more than 10M on a few occasions.
Monthly Trading Volume By Platform
When we look at the trading volume on a monthly basis and by platform we get this.
The second half of the year had a much higher trading volume, especially July and August.
Upbit (white) is still dominant, especially in the months with high volumes. On a regular month, the volume on the internal market (red) is close to it.
HBD Monthly Trading Volume Share
What is the share of the internal market trading volume compared to the other places?
Here is the chart.
There are two dominant pools now, the internal DEX and Upbit. Prior to July the Internal DEX kept growing its dominance, but then in July and August there were HBD pumps on Upbit and most of the volume happened there. We can say that under normal conditions for HBD, most of the volume is on the internal DEX and when there is an increase in the price of HBD (or a drop) the volatility and the trading volume comes from Upbit.
*For the whole 2022 the pie chart for the trading volume looks like this:
On a yearly basis Upbit is still dominant, because of the high volumes that happens during the months with HBD price volatility. A total of 88% of the trading volume in 2022 has come from Upbit, then the internal market with 10% and Hive Engine and Cub with around 1%.
Top Liquidity Providers On The Internal Market HiveDEX
All the trading that is happening on the internal market is recorded on the chain and we can see who has been providing the liquidity, aka buying and selling HBD.
Top Accounts Selling HBD On The Internal Market:
Most of the HBD selling happens when HBD trades above 1$. The @teamsmooth-mm account comes on top here with 4.6M HBD, followed by @hivekorea with 4.5M and then @konvik-hbd.
What interesting is that the @hbdstabilizer is not on the top here but it comes on the 6th position. This is most likely because, most of the HBD selling happened in a short lived HBD pumps (less than a day), and the accounts above were buying HIVE and converting that instantly to HBD to make arbitrages, while the stabilizer has a limited funds of less than 200k HBD to work with in a day.
Top Accounts Buying HBD On The Internal Market:
The stabilizer comes on the top here, meaning it has provided the highest support for HBD on the downside. There have not been any significant drops in the price, like the pumps on the upside, but a prolonged periods with the HBD price just under the dollar (0.99-0.98) where the stabilizer has been buying.
HBD Price On The External Markets
At the end the chart for the HBD price in the period.
We can see that the HBD price on the external markets in 2022 was quite stable with a few short lived exception, when it broke the peg on the downside, but also on the upside.
There were four occasions when the HBD price broke the peg significantly on the downside, in January, June, August and November. On each of these occasions the price bounced back to the peg in one day, except maybe for November when it needed a few days to fully come back to the peg.
Note that these are external market prices, while the internal on chain price has been at the peg, and users can convert HBD to HIVE for one dollar at any time.
On the upside HBD broke the peg once significantly at the end of July, when it reached a 1.2$ for a day, and then once again in October. Both of these were very short lived.
All the best
Posted Using LeoFinance Beta