- Crypto markets have experienced the lowest quarterly trade volume since 2020.
- TrueUSD faces scrutiny amid financial troubles of crypto custodian Prime Trust.
- DeFi tokens show mixed performance, while KRW trade volume surpasses USD.
In a data-driven update, crypto market data provider Kaiko unveiled that the crypto markets plunged to the lowest trade volume in a quarter since 2020. However, despite the downward trend in trade volumes, the quarter ended positively for the crypto industry.
Kaiko’s findings shed light on various key aspects impacting the market. One area of focus was the scrutiny surrounding TrueUSD (TUSD) due to the financial difficulties faced by crypto custodian Prime Trust.
The regulatory filing to place Prime Trust into receivership revealed a shortfall of approximately $82 million, leaving customers unable to withdraw. Additionally, True USD faced significant selling pressure on decentralized exchanges after it was revealed that its current auditors were the rebranded auditor of FTX.
Despite the challenges, the price of TUSD remained relatively stable throughout the week, hovering around $0.999. However, Kaiko points out that Prime Trust’s holdings of TUSD represent about 15 times the token’s daily volume on centralized exchanges. This position makes it unlikely to liquidate a significant portion of its holdings without causing substantial price impacts.
In terms of market performance, altcoins’ open interest experienced a drop in the second quarter. Layer 2 tokens, which had shown strong returns in Q1, recorded a decline of 20% to 40% in Q2.
DeFi tokens, on the other hand, closed the quarter down by 8% but gained momentum in June, primarily driven by the surge of MakerDAO’s MKR and Compound’s COMP tokens. COMP saw a significant surge of over 50% following increased buying activity from whales on Binance.
Another notable development was the Korean won (KRW)-denominated trade volume surpassing USD volume in the final week of the quarter. The surge in volume was largely driven by WAVES and Bitcoin Cash (BCH). WAVES experienced a price jump of around 90% after securing investment and support from DWF Labs, while BCH saw a remarkable rise of nearly 200% in the past two weeks following its listing on EDX Markets.
Notably, EUR-denominated volume on centralized exchanges declined, hitting a two-year low since the beginning of the crypto bull run in late 2020.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
