Crypto Trading Volumes Crash In June To Lowest Level Since 2020

Crypto trading volumes crash in June to the lowest levels since 2020 and Coinbase now ranks only as the 14^th biggest exchange by trading volume, down from the 4^th in late 2021 as we can see in the data today from our cryptocurrency news.

The crypto spot and derivatives volumes on all exchanges dropped by 15% since May to around $4.2 trillion amid the market correction as per the data from CryptoCompare. The data shows that the market failed to recover from the damage done during the second quarter of the year. The crypto trading volumes crash to the lowest levels in June and dipped over 28% to $1.41 trillion. The situation didn’t change in July as well as the current volume is still down by 15%.

Kathie Stockton the co-founder of Fairlead Strategies said that the low volume and the static will persist until a market reversal occurs:

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

The BTC futures contracts at the CME group reached $29 billion which is the lowest level since 2021 and it is worth noting that the main cryptocurrency closed the worst quarter of the decade as BTC remained below $20,000. in bearish conditions, JPMorgan strategists predicted that BTC will continue dropping as the average production cost dropped from $24,000 to $13,000.

The drop in trading volume as can be seen from the drop in interest in crypto among investors also reflected in the low dominance of the leading exchanges like Coinbase. The US giant experienced a huge slump in volume for the crypto winter and resulted in the fallout from the list of top 10 crypto exchanges that were ranked by trading volume. Bloomberg’s reports show that it only had a 2.9% average market share among the top 30 in June or down by 3.6% from the second quarter. The structural issues in the business model made it suffer from competition with other challengers as Dan Dolev commented.

Amidst the increasing concerns about the profit trajectories, Coinbase decided to cut expenses as the revenue dropped 27% in the first quarter year over year. It also announced cutting 18% of the headcount and cited other impacts of impending recession and high rate hikes imposed by the FED.