October 2022 sees lowest-ever daily-trading volumes for crypto-products

by Lalithaa

Even though the cryptocurrency market is slowly improving and Bitcoin is still over $20,000 after dropping to $17,600 in June, the average daily volume of all digital asset investment products is still at a record low this month. Because of its first crash, the price of Bitcoin dropped to $17,600 in June. If you invest in Bitcoin at the right time, you could see your money grow exponentially and become financially secure using Bitcoin Prime trading platform.

A report from CryptoCompare that came out on October 27 said that the average daily trading volume of institutional crypto goods dropped by 34.1% in October to $61.3 million. Almost all of the things in the study saw a significant drop in how often they were used daily. The results ranged from -24.3% to -77.5%.

Even though there was a slight exception in May 2022, the number of trades each day has been decreasing since November 2021. Not just because the market is crazy right now. Since September 2020, the average daily volume in October for the second month has been less than $100 million.

On the other hand, the analysis shows that some market indicators are going in the right direction. Assets under management, or AUM, for all digital asset investment products, are now $22.9 billion, 1.76 percent more than they were in September. This was the first time since July that AUM went up.

Recently, 55,000 Bitcoin worth more than $1.1 billion were taken off the Binance exchange, a record number.

The number of assets under management (AUM) held by trust products, which made up 77.3% of the market in October, went up by 2.34 percent to $17.7 billion, while the amount of AUM held by exchange-traded funds (ETFs) went down by 1.59% to $2.21 billion.

Another important metric is the amount of money that comes in and goes out. In October 2018, the average weekly net flows for Bitcoin-based products were $8.37 million, and the average weekly net flows for short Bitcoin-based products were $5.03 million. Ether’s situation is much more dangerous. You want to put money into Bitcoin, but you can’t locate a reliable platform to buy and sell digital currencies.

On the other hand, as of October 26, ETH, the Ethereum blockchain currency, had grown more than BTC. It went up more than BTC and hit a weekly high of $1,554 after going up by almost 14%. One ether token cost USD 1,508 when this was written.

If you only looked at how the cryptocurrency market is doing in October, you might think the month has been going well. Two of the most popular cryptocurrencies, Bitcoin and Ethereum, cost a lot more now than they did at the start of the month.

The average number of trades has dropped the most in the last two years 

According to the study, $61.3 million of digital assets were traded daily, which was 34.1% less than the year before. This number is at its lowest point in the last two years. Most of the items’ daily averages went down by a lot. The results ranged from -24.3% to -77.5%.

Overall, products based on Bitcoin did a lot better than those based on Ethereum. Returns on Bitcoin-based products ranged from -4.7% to 2.7%, while Ether-based products ranged from -22.1% to 0.8%.

Institutions liked Bitcoin-based goods much more than Ether-based goods. This is clear because the number of Bitcoin-based items sold each week was 66% higher than the number of Ether-based items sold each week.

Assets under management are getting bigger

After a few weeks of falling prices, the cryptocurrency market began to show signs of life in October. This brings us to the most crucial good thing about the study: the percentage of digital assets managed by institutions (AUM).

Assets under management (AUM) went up by 2.55% and 3.5% for Bitcoin and Ethereum-based products, respectively. Because sales increased by 2.33 percent, trust goods now have 77.3 percent of the market. In the last five months, it hasn’t been this high.

The total amount of money that ETC products made was $1.29 billion. This is more than before by 4.46 percent. CoinShares’ Ether Tracker One (XETHONE) did pretty well, increasing by 6.20 percent.

In just 24 hours this week, people bought and sold things worth $1.13 billion. Recently, the prices of Bitcoin and Ethereum have gone up, and so (ETH). The majority of these deals involved short holdings.

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