According to The Block, trading volume on cryptocurrency exchanges jumped to $733 billion in September, up 16% month-on-month and marking the first significant increase since May of this year.
In the year’s first half, the cryptocurrency industry did not perform as well as expected, with a significant drop in spot and derivatives trading volumes across major exchanges.
Cryptocurrency spot trading volumes fell nearly 28% in June to $1.41 trillion, the lowest level since December 2020, as bitcoin prices tumbled, according to data compiled by CryptoCompare.
The Block’s legitimate trading volume index shows $629 billion in June, $633 billion in July and $630 billion in August.
Source: The Block
Katie Stockton, the co-founder of Fairlead Strategies, said:
“Volumes have declined given investor sentiment in cyclical bear markets. So, before cryptocurrency prices break out of the bear cycle (which may be a few months away), volumes are expected to be below average.”
As Bitcoin (BTC) continued to oscillate near $19,000 recently, CryptoQuant noted that more than 60,000 Bitcoins have flowed out of exchanges over the past three days, the highest amount of outflows in months, a sign that demand is re-entering the market. Santiment also reported similar data, noting that traders are likely to be confident in the fourth quarter.
CryptoQuant data showed 61,301 bitcoins flowed out of exchanges in the past three days, marking the largest outflow in recent months. “This is quite an important indicator and highlights signs of demand re-entering the market after months of declines,” CryptoQuant analyst Maartunn said.