Ethereum Trading Volume Plunged More Than $1.6 Trillion in Second Quarter

Ethereum (ETH) trading volume in the second quarter of 2022 was lower than that of the second quarter of 2021.

Ethereum continues to exchange hands below $2,000 due to an overall sinking crypto market. Investor interest in the second-largest cryptocurrency by market value waned in the second quarter of the year, according to Be[In]Crypto Research. 

ETH trading volume during the second quarter was approximately $1.68 trillion. This was a 49% decrease year-on-year of around $3.32 trillion. 

Ethereum decline follows wider crypto market 

The drop in investor interest for riskier assets due to consistent hikes in interest rates that made non-volatile assets such as government bills and bonds attractive has been credited for the fall in trading volume. 

In April 2021, Ethereum trading volume was roughly $995.33 billion with a single-day high in the region of $55.41 billion. Despite the launch of the Otherside metaverse on the last day of the month coupled with the demand for non-fungible tokens (NFTs) on the Ethereum blockchain, ether saw reduced liquidity year-on-year.

In April 2022, the trading volume of Ethereum was about $493.83 billion and the single-day high was $25.63 billion. 

In May 2021, increased demand for ether saw the coin test $4,000 for the first time. ETH trading volume for the fifth month of 2021 was $1.51 trillion and came with a single-day high of $84.48 billion.

Unfortunately, most investors saw more than 50% of their gains wiped off in May due to the steep decline in digital assets led by the collapse of the stablecoin, TerraUSD (UST). The trading volume of Ethereum for May was around $625.95 billion, with a single-day-high of $45.74 billion.

In June 2021, ether along with the entire space recovered from the impact of Elon Musk’s announcement of delisting Bitcoin as a payment method for Tesla products, and major crackdowns from unfriendly crypto countries such as China in May 2021. 

As a result, there was a 46% dip from May to $813.52 billion in the sixth month of 2021. The single-day high for June 2021 was about $41.91 billion. Ethereum trading volume in June 2022 mirrored the crypto climate of the same period last year. The trading volume of the second most popular coin was $562.03 billion with a single-day high in the region of $45.16 billion.

Ether price reaction

ETH opened on April 1 with a trading price of $3,282.58, reached a quarterly high of $3,573.96 on April 3, tested a quarterly low of $896.11 on June 18, and closed the second quarter of the year at $1,067.30. Overall, this equates to a 67% decrease between the opening and closing price for the second quarter 2022.

Source: ETH/USD Chart by TradingView

For the sake of comparison, ETH opened on April 1 2021, with a trading price of $1,919.16, reached a quarterly high of $4,362.35 on May 12, tested a quarterly low of $1,707.60 on June 2022, and closed the second quarter of 2021 at $2,274.55. Overall, this represents an 18% increase in the opening and closing price of Q2 2021.  

Source: ETH/USD Chart by TradingView

The post Ethereum Trading Volume Plunged More Than $1.6 Trillion in Second Quarter appeared first on BeInCrypto.

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