The trading volume on cryptocurrency exchanges is experiencing new declines and there are many reasons for this.
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Blockchain. Transaction volume on the largest crypto exchanges is reaching new lows as the Bitcoin price drops to $31,400, according to com statistics. All major exchanges are experiencing a massive drop in volume, including Coinbase, Kraken, Binance, and Bitstamp.
BTC/USD has the largest currency trading volume at $119 million, hitting a six-month low. Various exchanges lose between 15 and 30 percent of their volume on all trading pairs.
The new volume drops are tied to a significant drop in the network hashrate from the Chinese government’s actions against cryptocurrency miners. While we are seeing a slight recovery in mining strength across all major networks, the market price is still in a strong downtrend with no random signs of recovery. Currently, the total market value remains at $590 billion.
While there are many on-chain factors that have an impact on transaction volume on major exchanges, the most notable correlation for exchange volume is the Bitcoin price. Speculative interest acts as the main driver of the process volume of the cryptocurrency market.