Daily trading volume on the centralized exchange (CEX) fell to its lowest level since the second half of 2020, according to data from Silkworm.
The chart below shows the decline pattern of top CEX volumes since May 2021. This year there was a $100 billion double top around April. Since then, CEX trading volume has continued to decline.
Daily volume is currently around $5 billion, the level last seen near the end of the last bear cycle. Meanwhile, Bitcoin was rallying to try to recoup $20,000, marking the beginning of the final bull run.
Co-founder of Reflexivity Research commented on the data: Will Clementespoke of the apathy of the market, adding that times like this could be beneficial for those still alive. He said:
“The market as a whole is in a period of apathy and surrender over time. The lack of speculative interest from the public creates opportunities for those with strong convictions.””
of Crypto Fear and Greed Index It has hovered around $50 for the past three weeks, confirming Clemente’s call to indifferent market sentiment.
What about the DeFi market?
Aggregate analysis of Total Value Locked (TVL) shows that participants are not transitioning from CEX to DeFi, suggesting a broader scale of crypto capitulation.
The graph below shows that in response to the implosion of the Terra ecosystem, TVL across all protocols dropped significantly from early May 2022, reaching a local low of $38 billion on January 1st. I’m here.
2023 saw a gradual rise from regional lows, reaching a peak of $53 billion on April 16, but the overall pattern has been flat this year.
Further analysis shows that the demise of Terra has made Binance Smart Chain (BSC) and TRON the biggest winners in DeFi.
As of May 6, Terra Classic accounted for 14.8% of all TVL, while BSC and TRON accounted for 7.6% and 3.2% respectively.
BSC currently holds 9.4% of the market and TRON has tripled its market share to 12%. Ethereum has consistently held around 60% since October 2022.
The article first appeared on CryptoSlate after daily CEX cryptocurrency trading volume sank to its last-seen low in 2020.