Bitcoin price continues to strive to form a straight line as possible over the weekend. But what about altcoins? Bear markets have caused many popular projects to lose significant value. If this process continues, we may see most teams disband in the middle of the longest-lasting downturn. On the other hand, there are also good news despite all the negativity.
The total number of completed transactions since the launch of the popular decentralized cryptocurrency exchange Uniswap in 2018 has exceeded 200 million. Transaction volumes on decentralized exchanges have been declining since March. According to a report published by CoinGecko in July, volumes decreased by 31% in the second quarter.
We constantly mention that there is a similar volume decline in centralized exchanges as well. There have been days when the cumulative daily volume dropped to 15-18 billion dollars. Furthermore, due to the reduction of assets by market makers in centralized exchanges, the losses have deepened. Especially starting from May, you can clearly see the sharp volume drop in the charts.
DeFi As we turn to the front, according to Vaneck’s report, the volume decline here has accelerated. In August, it was observed that volumes decreased by 15.5%, to $52.8 billion compared to July. At the end of the first quarter, this figure was over $155 billion.
With only seven days left until the end of September, Uniswap recorded a transaction volume of $14.85 billion, an 80% decrease in monthly transaction volume since the highest level of $73 billion recorded in March. The decrease in transaction volume is due to active investors avoiding taking positions during the summer months and in the midst of challenging bear markets.
The number of addresses performing monthly transactions on Uniswap, which has a cumulative user count of 847,500 as of September 23, has decreased by 10% since May. This situation has also affected the network fees, which have decreased by 39% in the last three months.
On the price side, the $4.23 region is currently being protected, and it would not be surprising for horizontal movement to continue depending on the price of BTC. The obstacle of $4.32 will need to be overcome for the recovery to begin.