Crypto exchange volumes have slumped to the lowest monthly level since 2020.
Cryptocurrency exchanges have seen their lowest monthly volumes after the drop in 2020. However, experts evaluated what could happen in the light of the data.
Experts Examine the Volume Data of Cryptocurrency Exchanges
Crypto exchange volumes have reportedly fallen to their lowest monthly level since 2020. The recession in the crypto market has led to one of the least active months in digital asset trading in recent years.
Monthly cryptocurrency exchange volumes, which in May were just below spot volumes at major trading centers, are on track to hit their lowest level since October 2020. According to the data obtained, this situation is quite different when compared to the monthly volumes of $1.4 trillion and $4.25 trillion in May 2022 and May 2021, respectively.
The calm trading activity in digital assets revealed that it is directly proportional to the trend of withdrawal of large trading firms from the market and the transition to decentralized trading platforms.
Institutional trading center LMAX said in a news release that volatility is another factor, with its own trading volumes “cooling down”. “Volatility is correcting in a lower trend after hitting its annual high in March,” the exchange said.
