Crypto-trading volume fell in June to the lowest level since 2020 (Report)

Crypto spot and derivative volumes across exchanges have fallen more than 15% since May to around $ 4.2 trillion in the midst of the expanded market correction, according to data collected by CryptoCompare. This shows that the market has not managed to recover from the historical damage that was done in the second quarter of this year.

Volume decline persists

Crypto-trading volumes, closely dependent on the broader market sentiment, fell over 28% in June to $ 1.41 trillion, reaching the lowest levels since December 2020, Bloomberg reported. The situation did not improve much in July, as the current volume is still down over 15% from May.

Katie Stockton, co-founder of Fairlead Strategies, said the static and low volume are likely to persist until a market turnaround occurs:

“Volume has declined given the reduced tension from investors in a cyclical bear market until cryptocurrencies break out of the bear market cycle, which can take months, we can expect the volume to be below average.”

In June, Bitcoin futures contracts in the CME Group reached only $ 29 billion, the lowest level since July 2021. It is worth noting that the primary cryptocurrency closed the worst quarter of the last decade, as BTC was below the key limit of $ 20,000 1. July.

In such a bearish state, JP Morgan’s strategists predicted even on Thursday that BTC would continue to fall as the average cost of production fell from $ 24,000 in early June to $ 13,000 at current levels.

Coinbase’s leader in the issue

The sharp fall in trading volume – which translated into the reduced interest in cryptocurrency among investors – has been reflected in the reduced dominance of leading exchanges such as Coinbase.

The American giant experienced a sharp decline in volume in the middle of the ongoing crypto winter, which resulted in it falling out of the list of the 10 best crypto exchanges ranked by trading volume.

Bloomberg’s report indicated that it only had an average market share of 2.9% among the top 30 in June – down from a 3.6% average in Q2 and 5.3% in Q1. Structural issues in the business model had caused it to suffer from competition with other challengers, commented analyst Dan Dolev of Mizuho Securities USA.

Amid growing concerns about whether the profit path is on track, Coinbase decided to cut spending as revenue fell 27% in Q1 YoY. It later announced a 18% cut in the number of employees, citing the noticeable effects of the impending recession and aggressive rate hikes by the Fed.