Drop in spot and derivative trading volumes is reflecting the current state of the overall crypto market.
Cryptocurrencies across the wider crypto market have seen tough times during heavy market downturn. If trumbling crypto prices were not enough to create panic, the indicators that show the health of the market, started taking drastic dips. From spot trading to derivatives, almost every other key indicator of the crypto industry is experiencing significant loss.
According to the reports, the overall crypto market has seen a recorded loss of 27.5% of its spot trading volumes in the month of June alone. This is the biggest drop that made spot volumes reaching their lowest in the last 18 months, since December, 2020. Following the significant drop, crypto spot volumes reached $1.41 trillion.
While another crucial factor of the market indicator – derivative volume – also experienced a drop of 7%. This drop may not seem significant in comparison to the drop in spot trading volume, but still it’s also at the lowest since January, 2021. Derivative trading constituted for about 66.1% of overall crypto trading in the market. After the fall, it currently holds about $2.75 trillion volumes.
Overall, both spot and derivative trading volumes have dropped and witnessed record lows this year. Spot and derivative trading volumes on different centralized exchanges have reached $4.16 trillion during May. This is a drop of 15.2% in a month that made the volumes reaching their lowest since January, 2022.
Such instances also prove the notion that this year remains not fruitful enough for crypto space. Rather, the crypto industry has seen enough trumble and falls like this year turned out to be one of its toughest phases. The fall in spot and derivative trading volumes is result of price decline of Bitcoin (BTC) and Ethereum (ETH).
Since starting of this year, after touching their all time highs last year, both top cryptocurrencies, alongwith other crypto assets, were struggling to keep pace. During the month of June, bitcoin lost 37.4% and ethereum lost 44.9% in a short span of a month alone. Currently, bitcoin (BTC) is trading at $22,261 while Ethereum (ETH) is at $1,458, at the time of writing.
Source: https://www.thecoinrepublic.com/2022/07/18/crypto-trading-volume-hit-18-months-low-raised-concerns-within-crypto-space/