Crypto exchange volumes plummet to lowest monthly level since 2020

Quick Take

  • Monthly cryptocurrency exchange volumes are on track to hit their lowest monthly level since October 2020.

The crypto market doldrums have resulted in one of the most inactive months in digital asset trading in years. 

Monthly cryptocurrency exchange volumes are on track to hit their lowest monthly level since October 2020, with spot volumes across major trading venues just under $424 billion in May. That's a far cry from May 2022 and May 2021, which saw monthly volumes of $1.4 trillion and $4.25 trillion, respectively, according to The Block's data dashboard.

The torpid trading activity in digital assets has been well-documented, with the trend underpinned by a retreat of large trading firms from the market as well as a shift to decentralized trading venues. 

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Volatility is another factor, institutional trading venue LMAX said in a newsletter on Wednesday, noting that its own volumes had "cooled off."

"Volatility has been trending lower in correction mode after peaking out at a yearly high in March," the exchange said. "We’re looking at average daily ranges in bitcoin and ether of $818 and $57 respectively.&q