Crypto Exchanges See Big Drop in Volumes as Bitcoin Volatility Approaches 2020 Low
Crypto exchange volumes could continue falling should volatility remain at these low levels, said CryptoCompare CEO Charles Hayter.
Exchange volumes are at rock bottom as traders turn away from sluggish bitcoin markets.
- Trading volumes on "top tier" spot exchanges fell by 36% in June, according to a report from London-based data provider CryptoCompare.
- Similarly, crypto derivatives exchanges experienced a 35.7% drop in volume to $393 billion, the lowest monthly volumes since the start of 2020.
- Bitcoin's ATR range – a volatility metric – has nearly halved since the start of June. At press time, it was just 20 points above its 2020 low.
- CryptoCompare CEO Charles Hayter said June's spot prices had been flat compared to previous months and the lack of price volatility likely explained the drop in trade volumes.
- In theory, exchange volumes could continue tracking downwards should volatility remain at low levels, he said.
- Volumes across the entire crypto spot market – both "top tier" and "lower tier" exchanges – fell nearly 50% in June, meaning the market share for crypto derivatives has increased 5% to 37%.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.