Crypto DEX volumes hit 2024 lows as traders retreat from risk
DEX volume plummets as spot and perpetual trading activity shrinks sharply.
Spot trading activity across decentralized exchanges [DEXs] declined sharply as bearish sentiment weighed on altcoins.
Blockworks data showed that weekly Spot DEX Volume fell to $30.44 billion between the 3rd and 9th of August. This marked its lowest level since the 23rd–29th of September 2024. Weekly volume stood at $29.26 billion then.
Solana [SOL], Ethereum [ETH], and BNB Chain recorded the highest daily trading volumes among tracked networks.
Meanwhile, weekly Stablecoin Swap Volume across Spot DEXs fell to $5.74 billion. That represented a 75.8% decline from this year’s $23.74 billion peak, recorded between the 2nd and 8th of February.
Lower Stablecoin Swap Volume indicated weaker activity involving stablecoins. However, it did not establish whether traders avoided risk assets specifically.
Together, these declines showed reduced DEX participation. The Perpetual market revealed that this retreat extended beyond Spot trading.
Why is Perpetual DEX volume falling?
Perpetual DEX Futures Notional Volume also fell as traders reduced leveraged activity. The metric dropped to $84.23 billion, marking its lowest weekly level this year.
Declining Spot and Perpetual volumes suggested broader risk aversion. However, lower volume alone did not confirm an intensifying bear market.
On top of that, CoinMarketCap data showed weaker Perpetual activity across centralized and DEXs.
Cumulative weekly volume fell 5.35% to $624.66 billion.
Reduced activity could weaken market liquidity and conviction. However, volume declines alone cannot determine Bitcoin or altcoin price direction. That uncertainty left sentiment as the next signal to watch.
Why does crypto market fear persist?
CoinGlass’s Fear and Greed Index showed that the crypto market remained fearful throughout the past 30 days.
Over the past year, the market spent 170 days in Fear. This represented 46% of the period. It also spent 115 days, or 31%, in Extreme Fear.
By contrast, Greed appeared for only 14 days. This showed how rarely investors maintained stronger risk appetite.
Sustained recovery may remain difficult while participation and sentiment stay weak. However, improving volume could provide an earlier sign of returning conviction.
Final Summary
- Weekly Spot DEX Volume fell to $30.44 billion, its lowest level since September 2024.
- The crypto market spent 170 days in Fear and another 115 days in Extreme Fear.
