Activity on cryptocurrency exchanges falls to the lowest since October 2020

Trading volumes on centralized cryptocurrency exchanges in May fell to the lowest since October 2020, around $424 billion. The data is from The Block.

For comparison, a year earlier this figure stood at $1.4 trillion, two years ago at $4.25 trillion.

The publication attributes the trend to the departure of large market makers from the market and investors’ reorientation toward DEX. An additional factor was the narrowing of the range of price fluctuations.

“Volatility tends to decline during a correction after reaching annual maximum in March. We consider the average daily ranges for Bitcoin and Ethereum at $818 and $57 respectively,” — said the analysts at LMAX.

Earlier this week, the media reported layoffs at Binance.

Previously ForkLog drew attention to the rise in the share of trading volume on DEX relative to CEX to a record 22%. This occurred amid the popularity of meme cryptocurrencies.

In May, Ethereum’s share of the total supply on centralized platforms fell to a July 2016 low of 14.85%.