The last month of the year saw trading volumes on cryptocurrency exchanges that were comparable to those seen in December 2020, when bitcoin first went beyond $20,000.
According to the data dashboard of The Block, the trade volumes of cryptocurrency exchanges rounded off 2022 at their lowest level in the last two years.
When compared to November of this year, the seven-day moving average of cryptocurrency trading volumes reached $352.6 million, representing a decline of 47.6%. Exchange volumes for cryptocurrencies have not been this low since December 2020, when bitcoin was trading at $20,000 per coin.
In 2022, the value of cryptocurrencies saw a significant decline, with Bitcoin selling at about $16,000 in December, compared to $47,000 in January of this year.
The collapse of cryptocurrency exchange FTX, which filed for protection under Chapter 11 bankruptcy on November 11, was the driving force behind the roughly fifty percent decline in the volumes of cryptocurrency exchanges. According to the cryptocurrency price tracker CoinMarketCap, the value of FTX’s token, FTT, has decreased by 96% since the company filed for bankruptcy and is now trading at $0.84.
Indeed, trade volumes have a tendency to decrease over the winter holidays; this is particularly true for non-fungible tokens (NFTs), which saw lower trading volumes around Christmas for the second year in a row, as previously reported by The Block.
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