According to The Block, the trading volume in cryptocurrency exchanges it jumped to $733 billion in September, up 16% month-on-month and marking the first significant increase since May of this year.

In the first half of the year, the cryptocurrency industry did not perform as well as expected, with spot and derivatives trading volumes falling significantly on major exchanges.

Cryptocurrency spot trading volumes fell nearly 28% in June to $1.41 trillion, the lowest level since December 2020, due to falling bitcoin prices, according to data compiled by CryptoCompare.

The Bloc’s Legitimate Trade Volume Index shows $629 billion in June, $633 billion in July, and $630 billion in August.

Source: The Block

Katie Stockton, co-founder of Fairlead Strategies, said:

“Volumes have declined due to investor sentiment in cyclical bear markets. Therefore, before cryptocurrency prices break out of the bear cycle (which may take a few months), volumes are expected to be below the average”.

As Bitcoin (BTC) continued to hover near $19,000 recently, CryptoQuant noted that more than 60,000 Bitcoins have exited exchanges in the last three days, the most exits in months, a sign that demand is re-entering the market. Santiment also reported similar data, noting that traders are likely to be confident in the fourth quarter.

Data from CryptoQuant showed that 61,301 bitcoins left exchanges in the past three days, marking the largest outflow in recent months. “This is quite an important indicator and highlights signs that demand is re-entering the market after months of declines,” said Maartunn, an analyst at CryptoQuant.

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