Confirmed trading volumes on spot cryptocurrency exchanges fell by 28.4% in April compared to March, according to The Block analyst Larry Cermak.
Legitimate volume on cryptocurrency exchanges has seen a steep decline in April, which has historically never been a good sign. Down 28.4% vs. March. pic.twitter.com/qHGgh6vXkM
— Larry Cermak (@lawmaster) May 5, 2020
“April saw a steep decline, which historically has never been a good sign,” he noted.
In March, trading volumes increased by 22.4% compared to February. Amid the market crash on March 12-13, daily trading volumes reached record highs in the industry’s history. As a result, the cumulative figures for the first quarter jumped by 61% compared to the previous period.
Confirming his warning, Cermak overlaid Bitcoin’s price movement on the trading volume chart.
The Block considers exchanges with confirmed real trading volumes. The chart does not include several major platforms, including Binance, Huobi, and OKEx.
The rise in the price of the leading cryptocurrency amid low exchange trading volumes was pointed out by well-known Bitfinex trader Joe007. In his view, this indicates insufficient demand for further sustainable growth.
According to Dune Analytics, trading volumes on decentralized exchanges reached a record $668 million in March. In early May, the figure rose to $2 billion, nearly matching the total for the entire previous year.
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