Israel-based exchange platform eToro is struggling to continue upward with the need from crypto traders co-ordinate to an email sent to users earlier today.

"The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our power to back up Buy orders over the weekend."

As a result, the platform is warning of "possible limitations to crypto BUY orders" and that "spreads on crypto assets may also be much wider than usual."

EToro has get a victim of its own success. Yesterday marketing manager Brad Michelson revealed that in the previous 11 days, 380,000 new users had opened accounts and that trading volumes had surged 25 times higher than the aforementioned fourth dimension in 2020. Every bit of January nine, eToro boasted more than 17 million registered users.

Breakthrough Economics founder Mati Greenspan — formerly a marketplace analyst for eToro — told Cointelegraph that the warning detect was "a symptom of a potential upcoming liquidity crunch." He advised users on Twitter confronting trying to move funds off the platform.

Should eToro implement the foreshadowed measures, users will be restricted on their maximum exposure per cryptocurrency, and potentially exist unable to place new buy orders. Greenspan explained that it just means some users "might demand to wait in guild to buy in."

An eToro spokesperson told Cointelegraph that "In response, in the first eleven days of 2021, we take had over 380,000 new users register with eToro and crypto trading volumes of over 25x compared to the aforementioned period in 2020. Nosotros have therefore communicated with clients near the possibility of limitations to crypto purchase orders this coming weekend. Our experience of the 2017 crypto rally means that we understand the possible consequences of extreme volatility in crypto markets. We want to ensure that our clients fully understand the possible risks."

Last week, the exchange restricted European users from margin trading due to increased market risks and increased the minimum deposit amount by 400% to $1,000 in an try to get on summit of new user registrations.

Other exchanges are as well seeing surging merchandise volumes, with Coinbase's daily volume reaching $9.5 billion on January 12, up more than l% from its previous all-fourth dimension high of $6.five billion on Jan 9. Binance has also powered past its superlative of $23.7 billion, recording over $30 billion on Jan 12.

It is just a matter of fourth dimension before we come across other exchanges start to striking liquidity issues Greenspan believes, saying it is "highly likely" that we volition run into this situation occurring on other platforms in the near time to come.

Concerns around the limited Bitcoin supply available have risen to the foreground over the last six months with investment giant Grayscale snapping upwards Bitcoin at an alarming pace. The house now has $20 billion under its command as its Bitcoin (BTC) buys outstrip mining production by almost three to i throughout December 2020.

Update 1/14/21 at 11:16am ET: Added comments from eToro