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Poor October Cryptocurrency Trading Volumes Raise Concerns of the Market's Future

Oct 31, 2018


  • Today, Quantamize conducts an analysis of daily cryptocurrency trading volumes since the beginning of 2018 to help investors understand volume trends in four significant cryptocurrencies: Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization; Ethereum (ETH), the second largest cryptocurrency by market capitalization and the most notable decentralized application (DApp) platform; Ripple (XRP), the third largest cryptocurrency by market capitalization and promising payment coin; and Monero (XMR), the tenth largest cryptocurrency by market capitalization and cryptocurrency’s largest privacy coin.  
  • All four of the selected cryptocurrencies saw their daily trading volumes peak in the beginning of 2018 as cryptocurrency prices hit all-time highs. After reaching peak daily trading volumes in the beginning of 2018, all four cryptocurrencies’ daily trading volumes began to trend lower until the end of April and the beginning of May as cryptocurrency prices entered another short-term rally. The rally quickly faded into the summer as cryptocurrency prices began to fall lower, as seen in the graph below.  
  • Daily BTC trading volume has continued to trend lower since reaching USD$10.2bn on May 3rd, 2018. On October 13th, 2018, BTC's daily trading volume touched a 2018-low, recording a trading volume of USD3.064bn -- the next day, on October 14th, 2018, BTC recorded daily trading volume of USD$2.085bn, its second-lowest level of daily trading volume in 2018.
  • Daily BTC trading volume in October is by far the lowest of any month in 2018 -- so far in October, there have been 24 days where BTC recorded daily trading volume below USD$4bn. By the same criteria, June and July rank second and third out of months in 2018 with 11 and 10 days of daily BTC trading volume below USD$4bn, respectively.
  • ETH daily trading volume appeared to be gaining traction in September 2018, however, like BTC, October 2018 has proven to be a poor month for ETH daily trading volume. With the exception of September 2nd, 2018 and September 3rd, 2018, ETH daily trading volume spent the entire month of September holding about levels of USD$1.5bn. Since October began, however, 21 out of 30 days have recorded daily trading volume of less than USD$1.5bn.
  • XRP daily trading volume tells a different story than those above. XRP daily trading saw a small peak in May 2018 before stabilizing from June 2018 through the middle of September 2018. On September 21st, 2018, XRP’s daily trading volume spiked to USD4.1bn after an employee of the Ripple Company appeared on CNBC and hinted at the release of its xRapid platform. Since, XRP daily trading volumes have retracted to stable levels seen in the Summer of 2018 of between 
  • XMR daily trading volume trend is similar to that of XRP’s -- daily trading volume levels in XMR held steady from the end of May 2018 through August 2018. In September 2018, daily trading volumes began to gain traction and on October 10th, 2018, XMR daily trading volume spiked to USD$164.6mm. Since October 10th, 2018, however, XMR has recorded its 5 lowest levels of daily trading volume in 2018, the lowest of which coming on October 24th, 2018 when only USD$11.8mm of XMR was traded.
  • Overall, daily trading volumes in four of the most significant cryptocurrencies during October was low relative to the rest of 2018. Many investors are citing low trading volume as a sign of a continued bear market for cryptocurrencies. An alternate theory suggests that short-sellers of cryptocurrencies have lost steam and that long-term bullish investors make up the majority of those left investing in the market. Either way, the remainder of 2018 will prove to be a critical turning point for cryptocurrency markets, regardless of if it turns bullish or remains bearish.