According to statistics, daily cryptocurrency trading volumes dropped significantly in December 2022. On January 1, data shows that $22.95 billion was traded in the past 24 hours, down from double that amount, $54.78 billion, two weeks earlier. On November 8, 2022, 54 days prior, amid the FTX collapse, global cryptocurrency trading volumes were around $115.33 billion.
At the end of 2022, crypto trading volumes are 46% lower than the previous month
Cryptocurrency trading volumes around the world have declined significantly since the start of the year. For example, on January 2, 2022, a year ago, global trade volume for the 24-hour period was approximately $70.48 billion, according to archived statistics from coingecko.com. Today, global 24-hour volume is 67.43% lower at $22.95 billion. Additionally, 71.63% of all transactions as of January 1, 2023 were associated with stablecoins in the cryptocurrency economy.
While all stablecoins now account for $16.44 billion in trade volume, Tether (USDT) commands $12.45 billion, which equals 71.63% of the aggregate as of January 1, 2023 Two weeks ago, on December 15, world trade volume was $54.78 billion. and a good majority of these transactions were also for stablecoins. Cryptocurrency trading volumes have been declining since January 2022, with monthly peaks in May, September and November 2022.
The November spike came amid the chaos surrounding FTX’s insolvency, and daily trading volumes were significantly higher at that time. Crypto exchange volume data from The Block (Legit Index) shows that October 2022 had a volume of $543.67 billion, while November 2022 saw an increase of around 23.79% to 673, 01 billion. Now that December 2022 is over, statistics show that total volumes for December 2022 were approximately $357.48 billion, which is 46.88% less than the previous month.
The last time global cryptocurrency trade volumes were this low was two years ago, in December 2020. At that time, global cryptocurrency trade volumes were 7 .27% to $385.51 billion. Falling cryptocurrency trading volumes can have both positive and negative implications for investors.
On the one hand, low trading volume is often seen as a sign of a lack of interest in the crypto market, which could potentially indicate lower values. On the other hand, low trading volume can sometimes be interpreted as a bullish sign for the cryptocurrency economy, as it may suggest limited selling pressure.
What do you think of the drop in crypto exchange volumes in the last month of 2022? Let us know your thoughts on this in the comments section below.
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