Ever since the US Securities and Exchange Commission pinned Coinbase and Binance, day-to-day crypto trading has been in freefall.
Most crypto exchanges have seen their trading volumes drop in the last 24 hours. However, it should be noted that crypto trading activity tends to decrease during the weekend. This means that this decline may not be as alarming as one might think.
Crypto trading volume dips into red
Since the SEC cracked down on Binance and Coinbase, investors have withdrawn billions of dollars from centralized exchanges.
According to CoinMarketCap, the volume of the top 9 crypto exchanges has decreased by 30% to 55% in the last 24 hours.
On Binance, trading volume fell by 33.4%, reaching $5.6 billion on Monday. Unsurprisingly, the BTC/USDT duo, which represents 23.3% of this total, remains the most traded pair.
For its part, Coinbase saw its daily trading volume drop by 41%. Similarly, the exchange is facing a massive wave of Ethereum deposits. In fact, many investors fear that the SEC will attack the platform’s betting service.
Finally, Kraken, Bitstamp and Bitfinex saw their trading volumes drop by 50%.
Also note that the SEC’s attack against Binance has brought him heavy losses. According to Glassnode, the exchange’s BTC balance has fallen by 5.7% (or about $1 billion) since last week. While this number may seem huge, it is still very small compared to the wave of withdrawals triggered by the collapse of FTX in November.
Changpeng Zhao talks about it
In a tweet posted on Saturday, Changpeng Zhao, CEO of Binance, recommended investors not to rely too much on withdrawal volumes. According to him, many analytics platforms are based on AUM (assets under management or assets under management). As a result, they can sometimes count declines in cryptocurrency prices as outflows.
For example, DeFiLlama reports that $3.4 billion was withdrawn from Binance last week. However, the market value of the crypto market has shrunk by more than $80 billion in the same period. This means that the platform data is slightly skewed.
Binance’s Total Locked Value (TVL) fell 13.8% from $64.2 billion to $55.3 billion on June 11. However, this number includes falling cryptocurrency prices.
Back to normal?
According to CoinMarketCap, crypto trading volume reached $26.4 billion on Monday, June 12. This is about half of the $54 billion recorded on June 6, just after the SEC crackdown on Coinbase and Binance.
However, note that the market cap of the crypto market remained stable over the weekend. Therefore, this recent drop in crypto trading volume could signal the start of a return to normalcy.
Moral of the story: Much to the chagrin of its enemies, the crypto market weathers all storms.
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