Statistics show that daily cryptocurrency trading activity experienced a steep decline in December 2022. According to the data, $22.95 billion was traded in the last 24 hours, compared to $54.78 billion two weeks ago. This is 54 days after the collapse of FTX, when global crypto trading volumes totaled around $115.33 million.
Crypto exchanging in December 2022 is 46% lower than the previous month
Cryptocurrency trading volumes have decreased significantly around the world since the start of the year. For instance, on January 2, 2022, the global 24-hour trading volume was around $70.48 trillion according to archived data from coingecko.com. Today, that number is $22.95 billion, which represents a 67.43% drop. Moreover, 71.63% of all trades are composed of stablecoins.
$16.44 billion of the total is traded in stablecoins, with Tether (USDT) commanding $12.45 trillion or 71.63%. On November 8, 2022, global trading volume was $54.78 billion, with a majority of these trades in stablecoins. Cryptocurrency trading volumes have been in decline since January 2022, with the monthly peaks in May, September, and November 2022.
The insolvency of FTX in November caused a surge in trading volume. According to The Block (legitimate index), October 2022 saw a volume of $543.67 billion, followed by a 23.79% increase to $673.01 billion in November. December 2022 saw a total of $357.48 billion traded, which is 46.88% lower than the previous month.
The last time global crypto trading volumes were so low was two years ago in December 2020, when $385 million was traded. This is a 7.27% increase from the $510 million seen in December 2022. Lower trading volume can both benefit and hurt investors in the crypto market.
On one hand, lower volume could be an indication of waning interest in the crypto market. On the other, it could point to a bullish market, due to the lack of selling pressure.
What do you make of the decline in crypto trading volume over the last month in 2022? We would love to hear your thoughts on the subject. Please share your comments below.
