Significantly low crypto volumes were reported in June across the entire crypto spectrum. BitMEX Research conducted research as per data from CryptoCompare and revealed that the month of June had recorded an enormous slide in cryptocurrency volumes. The lackluster month saw spot exchange volumes sliced by half.
As lockdown restrictions ease and people move back to their regular jobs, the reduced trading activity is evident by the drop in crypto volumes. The drastic reduction in the crypto volumes wiped out a huge chunk of the daily trading activity. A mere $642.6 billion of crypto volumes show that trading activity took a massive hit last month.
BitMEX Research sheds light on low crypto volumes
Low-tier spot volumes were reported to lose close to 53 percent of its value. In comparison, large exchanges reported a drop of 36 percent in volumes, with a figure ranging around $177 billion. Such sharp and abrupt volatility hasn’t been reported in a while in the crypto segment. The worst-hit was taken by the low-tier exchanges as their spot volumes registered a downtick of 53 percent. These platforms dropped by a massive $466 billion.
The decline can be attributed to the Coronavirus and the changing economic scenario. Almost every major exchange reported low crypto volumes, whether it be Coinbase, OKEx, or Binance. However, Coinbase suffered a huge blow as it lost volumes to the tune of 36 percent.
Coin wise, Tether registered the most significant drop in Bitcoin trading volume. It faced a substantial 69 percent decline. On the bright side, Tether’s circulating supply saw an uptick in the month of June. The derivatives realm also didn’t fare much better as all the platforms reported remarkably low crypto volumes.
Exchanges across all spectrum suffer equally
From BitMEX to Deribit, every derivatives exchange saw volumes go down the drain. The approximate 35 percent drop in volumes crippled the operating expenses of many platforms. In comparison, they performed relatively well as the spot exchanges saw a decline of 37 percent. This marginal difference may represent a little better situation, but the overall scenario is gloomy.
A 23 percent reduction in CME futures does put a halt on the growing options market. Experts will comment on the low crypto volumes in due course of time. Whether it is Coronavirus or crypto fault lines, these low crypto volumes meant June was more or less stagnant.
