and a good majority of those trades were in stablecoins as well. Cryptocurrency trade volumes have been declining since Jan. 2022, with monthly spikes in May, Sept., and Nov. 2022.
The November spike occurred amid the chaos surrounding FTX’s insolvency, and there were significantly higher daily trade volumes at that time. Data from The Block’s crypto exchange volume shows that Oct. 2022 had $543.67 billion in volume, while Nov. 2022 saw an increase of approximately 23.79% to $673.01 billion. Now that Dec. 2022 is over, statistics show that Dec. 2022’s total volumes were around $357.48 billion, or 46.88% lower than the previous month.
The last time global cryptocurrency trade volumes were this low was two years ago in December 2020. At that time, global crypto trade volumes were 7.27% higher at $385.51 billion. Lower cryptocurrency trade volumes can have both positive and negative implications for investors. On one hand, low trade volume is often seen as a sign of a lack of interest in the crypto market, which could potentially indicate lower values. On the other hand, low trade volume can sometimes be interpreted as a bullish sign for the cryptocurrency economy, as it may suggest limited selling pressure.
What impact do you think the insolvency of FTX had on global cryptocurrency trade volumes in November 2022?
Do you think low trade volumes in the crypto market are a bearish or bullish sign? Why?
What are your thoughts on the high percentage of stablecoins being paired with trades in the cryptocurrency market?
Did you see the significant drop in global cryptocurrency trade volumes in December 2022? What do you think caused the decline?
It's true that volumes have dropped, but that doesn't mean it's all bad news. DeFi is still growing and the quality and innovation of crypto-based products and services is increasing. HODLing is still the best strategy! DeFi Crypto
It is a new year,a new week and a new day for all Great investors to invest on ElectraProtocol $xep🧿
Exchanges like binance did a lot of washtrading as could be seen in the order books. This phenomenom is now in review so likely they are stopping this now that they are being investigated.
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