- Daily crypto trading below $10B which was last seen in 2020 has been seen.
- The volume of spot trade dropped to $9.2 billion on December 25.
- Experts believe this could be a result of the recent market correction.
The cryptocurrency market has experienced a significant downturn in daily trading volume lately. According to recent research by The Block, the daily trading volume for all cryptocurrencies combined has fallen below $10 billion for the first time since 2020. This marks a significant drop from the peak of above $75 billion that was seen back in 2021.
The volume of spot trade dropped to $9.2 billion on December 25 and continued to dip the next day, reaching $8.5 billion on December 27. The 17th of December 2020 was the last occasion when the daily spot trade volume was less than $10 billion.
However, on the other hand, the variables that led to this decrease in the trading volume are yet unknown; however, some market observers believe that it might be due to a mix of factors including the recent market correction, regulatory uncertainty, and traders just collecting gains in anticipation of future volatility.
Regardless of the cause, the current decline in trading volume is a clear indication that crypto markets are still in an early stage of development and may take some time to fully mature. Conversely, the drop has led to some investors becoming wary of investing in digital currencies.
If this trend continues, there is a good chance that the market will stay stagnant for a prolonged period of time. This would be a significant setback for the expansion of the sector as it would weaken the trust of potential investors and cut down on the prospects for new projects to come up.
