Crypto Trading Volumes Decrease in Q1 2022

The crypto market witnessed several challenges in the first quarter of 2022. From geopolitical issues to regulatory uncertainties, major global events had a significant impact on the price of Bitcoin and other digital assets.

Cryptocurrency trading platform, EXMO recently published its Q1 of 2022 crypto market report and highlighted a sharp decline in trading volumes across the digital asset market. For the reported period, trading volumes decreased by almost 26% compared to the previous quarter.

As far as the crypto market cap is concerned, the number declined by over 4% in the recent quarter. Leading digital currencies like Bitcoin and Ethereum have suffered major corrections during the past 3 months.

“In the first quarter of 2022, cryptocurrency market capitalization decreased by 4.2%. However, despite the fall observed in January, the market managed to almost fully recover within the next two months and topped the $2 trillion mark again. 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,” EXMO’s report noted.

“The median value of the Cryptocurrency Fear & Greed Index stood at 25 points, belonging in the 'Extreme fear' zone. During the reported quarter, there were only a few short-term periods of increase in market sentiment, with the index moving into the 'Neutral' zone,” the report added.

Crypto Inflows

Despite challenges, net inflows in crypto investment products remained positive during the first quarter of 2022. According to EXMO, net inflows for the reported period came in at $490 million, led by Bitcoin investment products with inflows of $342 million.

Ethereum took a major hit in the recent quarter as ETH-related investment products witnessed outflows worth $113 million. However, digital asset Solana saw considerable growth in the first quarter with inflows of more than $100 million.