According to CoinGecko, spot trading volume across the top-10 centralized and decentralized exchanges declined from $6.08 trillion to $3.79 trillion in the first 3 months of 2022 compared to Q4, 2021.
As can be seen in the chart above, ‘trading volume peaked in Nov 2021 and continued to decline in the subsequent months before having a bit of a rebound in March 2022 as the market recovered.’
- February’s trading volume of $1.1T was lower than any month in 2021
- DEX : CEX ratio has increased slightly from 11.8% in December 2021 to 12.8% towards the end of March 2022
What is Spot Trading?
Spot trading involves directly purchasing or selling financial instruments and assets such as cryptocurrencies, forex, stocks, or bonds. Delivery of the asset is often immediate.
Spot trading occurs in spot markets, which are either exchange-based or over-the-counter (directly between traders).
When trading on spot markets, you can only use assets you own – there is no leverage or margin.
Besides the sharp decline in spot trading volume across exchanges, CoinGecko’s Q1, 2022 Cryptocurrency Report had several other key highlights including:
- $ETH Staking Has Spiked
Despite a dip in $ETH price within the same period, total staked $ETH for consensus layer saw strong upward momentum (+25%) in Q1, 2022.
The successful Kiln testnet merge on March 14, 2022 ushered a spike in staked $ETH. At 11 million $ETH by end Q1, 2022, this represents ~9% of the total $ETH supply.
- Altchains Gain Ground on $ETH
One of the stars of 2021, Terra, has continued its momentum into 2022 with its share of overall TVL increasing to 10%.
Even as overall TVL in DeFi has reduced by 9% to $177 billion, Ethereum’s share of TVL is now 54%, down from 61% in December 2021.
According to CoinGecko’s analysis, Q1, 2022 was a hard time for crypto investors as the top 30 coins shed their value since peak ATHs in November 2021.
“By the time it hit the bottom on 23rd January, the Top 30 coins had shed over $1 trillion in market cap from their peak, closing out the quarter at pretty much where it started at ~$1.9T.”
– CoinGecko Q1, 2022 Cryptocurrency Report
However, at the same time, it was observed that in contrast to the rest of the market, market cap of top 5 stablecoins grew by 13%.
RECOMMENDED READING: Terra’s Algorithmic Stablecoin, $UST, Now the 3rd Most Valuable Stablecoin
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