Trading volumes for many digital currencies are at their lowest level we have seen for three months, with Bitcoin Cash in particular standing out for falling to just half a billion, far below its heydays of $5 billion at times.
Bitcoin itself is now down to $6 billion, some 75% or so less than the highs of $40 billion we have seen late last year.
While ethereum’s trading volumes have been more sporadic for some time as it went through its bear market during the second half of last year, rising in January to around $5 billion and now back down to $2 billion.
Global trading volumes are now lower than they were at the beginning of November, when they stood at around $23 billion.
Now, they are at $17 billion, with, interestingly, OKex handling some $2 billion of it. Followed by Binance at $1.5 billion, while South Korea’s Upbit and Bithumb stand at around $1 billion each.
Gdax, quite surprisingly, handles only $350 million. While bitFlyer, which sometimes claims to be the world’s biggest crypto exchange, is handling only $220 million according to CoinMarketCap.
The fall in volumes coincides with a general fall in price, which has wiped out some $400 billion off the global cryptos market cap since the beginning of the year.
Google search trends also indicate a lower level of interest for bitcoin and ethereum, with both seeing a lower level of transaction volumes in recent weeks.
But whether the above data is a lagging or a leading indicator of price, or whether indeed they simultaneously respond, remains unknown.
What is known, however, is that bitcoin’s December euphoria has given way to some calmer waters, with volatility seemingly reducing recently as ethereum’s and bitcoin’s price remains where it was four days ago.
This sideways action is welcomed news by some as projects can now get some attention regarding whatever they are developing, such as Dappchains.
But how long this consolidation period will last remains to be seen. Just as it is unknown at this stage whether we might see a decoupling as spring nears.