Trading volume on crypto exchanges at record low, except Binance

Last Updated: 1 September 2022

Statistics from analysis company Arcane Research show that crypto exchanges are quiet. The trading volume is even close to the annual low in April.

Low volume

According to the latest report from the Norwegian company, the daily total spot volume was $8 billion on average last week. They do mention that Binance makes it look somewhat high.

The “daily trading volume” indicates how much bitcoin has been bought and sold in the last 24 hours (or one day).

If this number is high, it shows that many coins are changing hands. If the trading volume is low, it shows there is little interest (from the retail market).

Binance as the odd man out

If you remove Binance from the chart above, you can clearly see a downtrend. At the end of 2021, the volume (excluding Binance) was still a lot higher. This is not surprising, as this was the end of the bull market when the price hit $69,000.

Currently, an average of $8 billion a day is still being traded, but if you remove Binance from the metric, it paints a different picture.

The exchange recently lowered its trading costs to zero, raising doubts about its real trading volumes. You can now place unlimited trades at no cost. This leads to completely different trading strategies that were previously not possible with larger amounts of money.

Also, Forbes recently published a report stating that 51% of all crypto-currency trading volume on 157 exchanges is fake. At Binance, this percentage is even higher, at around 58%.

  • Ivan Brightly

    Ivan Brightly is a leading cryptocurrency analyst and author with over 5 years of experience in the blockchain and digital asset space. He previously served as a senior analyst at a major cryptocurrency hedge fund where he led quantitative research and trading strategy development.

    Ivan holds a Master's degree in Finance from the London School of Economics and a Bachelor's in Computer Science from Stanford University. He is frequently invited to speak at fintech and blockchain conferences worldwide on topics spanning cryptocurrency trading, blockchain technology, and the future of digital assets.

    Ivan's commentary has been featured in several major finance and technology publications including Forbes, Bloomberg, and CoinDesk. He is considered one of the most insightful voices analyzing new developments in the cryptocurrency and blockchain industry.

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