Cryptocurrency Exchanges End 2022 with Lowest Transaction Volumes in Two Years
As per The Block’s Data Dashboard, the quantum of cryptocurrency exchange based transactions ended at two year low level in 2022. The seven-day moving average of cryptocurrency exchanges activities reached $352.6 million, a fall of 47.6% from November. Cryptocurrency exchange transactions haven’t been this dismal since December 2020, when bitcoin traded for about $20,000
Last month, the price of Bitcoin was approximately $16,000, compared with $47,000 in January.
The collapse of cryptocurrency exchange FTX, which sought Chapter 11 bankruptcy protection on November 11, was the driving force behind the roughly 50 percent decline in cryptocurrency trading volumes. As per the cryptocurrency market tracker CoinMarketCap, the value of FTX’s token FTT has fallen to $0.84 after the bankruptcy proceedings.
Certainly, transaction volumes tend to decrease during the holidays, particularly for NFTs, which saw reduced transaction volumes around Christmas for the second straight year, as revealed by The Block.