• Global cryptocurrency trade volumes have dropped significantly in December 2022, dropping from $54.78 billion two weeks earlier to $22.95 billion on Jan. 1, 2023.
• 71.63% of all trades on Jan. 1, 2023, were paired with the cryptocurrency economy’s stablecoins, with tether (USDT) commanding $12.45 billion.
• Cryptocurrency trade volumes have been declining since Jan. 2022, with monthly spikes in May, Sept., and Nov. 2022.
The cryptocurrency industry has seen a significant decline in trade volume during the month of December 2022. Statistics from Dec. 1, 2022 to Jan. 1, 2023, show that global cryptocurrency trade volumes have dropped from $54.78 billion to $22.95 billion. This represents a 58.48% decrease in trade volume, which is a significant decline for the industry.
Further, on Jan. 1, 2023, data shows that 71.63% of all trades were paired with the cryptocurrency economy’s stablecoins. In particular, tether (USDT) commands $12.45 billion, which equates to 71.63% of the aggregate on that day. This indicates that the vast majority of trades are being conducted with stablecoins, which could be indicative of a lack of investor confidence in the cryptocurrency markets.
It is important to note that cryptocurrency trade volumes have been declining since Jan. 2022. During the year, there have been monthly spikes in May, Sept., and Nov. 2022. The November spike occurred amid the chaos surrounding FTX’s insolvency, and there were significantly higher daily trade volumes at that time. However, Dec. 2022’s total volumes were 46% lower than the month prior.
The decline in trade volumes could be indicative of a lack of investor confidence in the cryptocurrency markets. It is also possible that investors are taking a wait-and-see approach to the industry and are holding onto their assets until there is more certainty about the future. Additionally, the fact that a majority of trades are being conducted with stablecoins suggests that investors are taking a more conservative approach with their investments.
In conclusion, the cryptocurrency industry saw a significant drop in trade volumes during the month of December 2022. This could be a sign of a lack of investor confidence in the markets, or it could be indicative of a wait-and-see attitude from investors. Regardless, it is clear that the industry is still in a state of flux, and it will be interesting to see how the trade volumes evolve in the coming months.