A q1 in-detail report was published by major crypto trading platform EXMO, shedding a clear light on the overall state of the crypto industry in terms of volume. EXMO commented that a sharp decline defined trading volumes, some 26% more than the last Q4 quarter. Yet, the news is not all pessimistic.
The crypto market cap experienced a decline this quarter, with major asset types such as BTC and ETH experiencing unstable volatility in the last 3 months. According to EXMO, the period of Q1 2022 witnessed an decrease of crypto market capitalization by 4.2 percent. Yet, the market was able to recover almost in full within two months, and rose again to surpass the $2 trillion mark.
Challenges aside, the numbers in net inflows related to crypto investments has remained good during this quarter. The EXMO platform reported a $490 million during Q1, with Bitcoin leading the way in terms of investment numbers. A total of $342 million in inflow of BTC products reported.
The general consensus is that despite instability, the market was able to recover and head toward a trend of increase. Or as EXMO puts it in its report,
“Trading volumes for the reporting period decreased by a quarter compared to the previous quarter. Gradual market growth was accompanied by a slight increase in trading activity,”
The crypto market is unstable by default; world events define trading volumes and pricings, and thus far this year has been defined by historic geopolitical developments and regulatory ambiguities, meaning that the volatile nature of crypto derivatives will remain the same if not more so.