Crypto trading volume on exchanges hit a low not seen since October 2020, according to data. Experts point to the banking crisis and a hostile regulatory environment in the United States as key factors.
Tracking 18 centralized crypto exchanges, shows daily crypto trading volumes are at $5 billion, the lowest levels since 2020. Many view the recent crackdowns and regulatory uncertainty by the US Securities and Exchange Commission as a driving force behind the decline.
Trading volume on crypto exchanges refers to the total number of digital assets bought and sold. It is the most common metric for assessing an exchange’s size and popularity.In both cases, the general trend for this year is downward. Experts generally point to regulatory action in the US as one key explanation. However, there is no clear consensus.
“This year, there are several factors at play, including low liquidity and market FUD caused by regulatory actions, especially in the United States. Trading volumes often reflect the current macroeconomic environment, and May always proves to be an interesting time for crypto,” Li a co founder shared his opinion.
