on the crypto
In September 2022, the volume of cryptocurrency trading recorded a 16% increase. This is after a fairly quiet spell over the past three months. For analysts, this is one of the most significant increases this year, after the one recorded between April and May.
An unexpected rise for cryptocurrencies
Between August and September, the volume of cryptocurrency trading increased by 16%. After three fairly quiet months, this is one of the highest increases recorded since May. The Block data dashboard confirms this.
In detail, the trading volume in September was 733 billion dollars, an increase of 16% compared to August. The Block recorded a volume of $ 629 billion in June, $ 633 billion in July and $ 630 billion in August. For analysts, this is a good rebound after the significant decline in trading volumes recorded at the beginning of the year. Second, the summer of 2022 wasn't the most prodigious one for cryptocurrencies. Furthermore, the increase came at a time when everything seemed to be going wrong.
The fall of Earth and other cryptocurrencies
May was not a quiet month, because it was also the time when the Earth ecosystem collapsed. The stablecoin TerraUSD (UST) has indeed dropped off the US dollar (USD) and the value of the cryptocurrency LUNA has fallen by almost 97%. This decline was not without consequences, as it impacted the entire cryptocurrency industry, including cryptocurrency miners.
It also precipitated the fall of some cryptocurrencies. The team behind LUNA is said to have sold their bitcoin reserves to recreate a USD peg. Others would have done so with the aim of regaining strength after the fall of the cryptocurrency. This created a domino effect which led to an even more difficult situation.
A gradual increase for some cryptocurrencies
However, the collapse of Terra Luna did not affect all cryptocurrencies. This is the case in particular with Solana and Cardano, which remain fixed points. In fact, despite having suffered deep declines, they remained in the top 10 of the cryptocurrencies with the highest market capitalization during this period.
Leaders of cryptocurrencies like Bitcoin and Ethereum, on the other hand, have already survived several downturns. This has been happening since the beginning of the year and has allowed them to perform better than other cryptocurrencies during the downturn in May. The same coins like Dogecoin, on the other hand, have to prove their worth to stay in the game. Furthermore, it would not be surprising if they see more volatility in the coming months.
Either way, the cryptocurrency market has been facing rather tough conditions since May. This is due to liquidity suppression. Analysts, on the other hand, remain rather optimistic about the future.
