Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Daily trading volume on centralized exchanges (CEX) has dropped to levels not observed since late 2020, according to data from Kaiko.
Crypto sentiment
The chart below illustrates a trend of decreasing CEX trading volume peaks starting from May 2021. This year experienced a double peak at $100 billion around April. Since that point, CEX trading volume has persistently declined.
The current daily volume stands at roughly $5 billion – a figure last recorded at the conclusion of the previous bear market. During that period, Bitcoin was preparing to reclaim $20,000, indicating the onset of the last bullish phase.
Source: Kaiko via @WClementeIII on Twitter.com
In response to the data, Will Clemente, co-founder of Reflexivity Research, discussed a state of market indifference – noting that such times could present opportunities for those who remain engaged. He stated:
“Market in aggregate is in a period of apathy and capitulation through time — lack of speculative interest from the masses sparks opportunity for those with strong belief.”
The Crypto Fear and Greed Index indicates that the past three weeks have hovered around 50, reinforcing Clemente’s observation regarding the apathetic market sentiment.
Source: alternative.me
Related Posts
What about DeFi markets?
An analysis of the aggregate Total Value Locked (TVL) suggests that participants have not transitioned to DeFi from CEXs – indicating a broader trend of crypto capitulation.
The chart below reveals a significant decline in TVL across all protocols from early May 2022 – following the collapse of the Terra ecosystem – resulting in a local bottom of $38 billion on January 1.
While 2023 has seen a gradual recovery from this local bottom, reaching a peak of $53 billion on April 16, the overall trend for this year remains flat.
Source: defillama.com
Further examination reveals that Binance Smart Chain (BSC) and TRON emerged as the primary DeFi beneficiaries following Terra’s collapse.
On May 6, Terra Classic represented 14.8% of the total TVL – while BSC and TRON accounted for 7.6% and 3.2%, respectively.
Currently, BSC holds 9.4% of the market, and TRON has increased its market share to 12%. Ethereum has consistently maintained around 60% since October 2022.
The post Daily CEX crypto trade volume sinks to lows last seen in 2020 appeared first on CryptoSlate.
