Crypto trading volumes hit yearly lows in Q2.
Crypto trading volumes have hit their lowest point for the year in the second quarter, as market makers have reduced their trading activity, according to data from Kaiko.
The average daily volumes for the top 10 tokens (excluding stablecoins) in the second quarter of 2023 was $10 billion, compared to an average daily volume of $18 billion in the first quarter of the year.
This decrease in trading volume comes as regulatory crackdowns have intensified in the last month, which may have prompted traders and market makers to reduce their activity. Recently, two of the largest cryptocurrency exchanges, Binance and Coinbase, received lawsuits against them from the U.S. Securities and Exchange Commission (SEC).
In terms of individual tokens’ market share of trading volume for the second quarter, bitcoin has lost around 20 percentage points since its peak at the end of March. Ether, on the other hand, outperformed bitcoin by taking a 5 percentage point increase in share of volumes. Binance’s BNB rose from 2% of volumes to over 7% in the last few days due to regulatory fears surrounding Binance.
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Edited by Nelson Wang.
