{"id":437664,"date":"2020-09-08T02:00:08","date_gmt":"2020-09-08T02:00:08","guid":{"rendered":"https:\/\/wncen.com\/?p=437664"},"modified":"2020-09-07T16:56:44","modified_gmt":"2020-09-07T16:56:44","slug":"crypto-exchange-volumes-show-investors-are-flooding-into-the-market","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/crypto-exchange-volumes-show-investors-are-flooding-into-the-market\/","title":{"rendered":"Crypto Exchange Volumes Show Investors are Flooding into the Market"},"content":{"rendered":"
Throughout August, the crypto markets witnessed some turbulence. While Bitcoin was primarily stable between $11,000 and $12,000, smaller altcoins saw immense volatility, with the growth of the DeFi industry leading many to see parabolic momentum.<\/p>\n
Ethereum played a large role in this, as the demand for the blockchain\u2019s network had a ripple effect that positively impacted its price. Eventually, ETH rallied as high as $490 before it lost its momentum and decline to lows of $320.<\/p>\n
The entire market<\/a> has been struck by inflows of selling pressure in recent weeks, which have caused many altcoins to post enormous losses.<\/p>\n That being said, data surrounding capital inflows into the crypto market elucidates that investors have been flooding into the market.<\/p>\n Top tier exchanges saw trading volume spike by nearly 60% last month, while lower-tier platforms that offer access to smaller and more speculative altcoins saw a 30% increase in volume.<\/p>\n It is important to note that institutional trading volumes rose as well, with CME futures contract trading activity jumping by over 36%.<\/p>\n Throughout the past couple of days, the strong uptrend that was previously guiding the entire market higher began stalling.<\/p>\n Bitcoin, which peaked at highs of $12,200 last week, has since slid significantly lower, being unable to garner any clear buying pressure.<\/p>\n Altcoins have been hit hard by this BTC decline, with many plunging by as much as 50%.<\/p>\n Ethereum has perpetuated this decline, as the cryptocurrency slid from highs of $490 to lows of $320. This sharp downside movement created a headwind that has severely damaged the strength of the aggregated market.<\/p>\n Per a recent report from CryptoCompare<\/a>, the crypto market<\/a> has seen massive inflows of capital from new and veteran traders alike.<\/p>\n This is reflected in the 58.3% spike in trading volume that top-tier exchanges witnessed.<\/p>\n \u201cIn August, Top-Tier volumes increased 58.3% to $529bn while Lower-Tier volumes increased 30.2% to $291bn. Top-Tier exchanges now represent 64% of total volume (vs 60% in July),\u201d the report revealed.<\/p><\/blockquote>\n <\/p>\n Interestingly, the institutional trading volume on the CME also increased. The report reveals that a total of 203,867 Bitcoin contracts were traded in August, marking a 36.3% rise from July.<\/p>\n \u201cMonthly CME futures contract volumes have increased 36.3% since July to reach 203,867 contracts traded in August.\u201d<\/p><\/blockquote>\nCrypto Market Struck with Turbulence as Uptrend Stalls<\/strong>\u00a0<\/strong><\/h2>\n
Exchanges See Massive Volume Inflows in August<\/strong><\/h2>\n
Image Courtesy of CryptoCompare.<\/pre>\n