What happened behind the significant shrinkage of the crypto market volume in November, the lowest point in half a year?

Question

[比推] The crypto market clearly cooled down in November. The spot trading volume fell to $1.59 trillion, a direct cut of 26.7% from $2.17 trillion in October, marking the lowest point in six months.

From the performance of various platforms, a leading exchange still holds the top position, achieving a transaction volume of 599.34 billion dollars, although this is a significant decrease compared to last month. Among other mainstream platforms, one exchange recorded 105.8 billion, Gate achieved 96.75 billion, and a compliant platform recorded 93.41 billion dollars.

Vincent Liu, the Chief Investment Officer of Kronos Research, shared his views: the market in October was indeed too heated, and naturally, it entered a cooling period in November. Both volatility and momentum declined, many people started to take profits, the trading range was also compressed, and the fall in volume became inevitable.

The situation on the DEX side is similar. According to data from DefiLlama, the trading volume of decentralized exchanges dropped to $397.78 billion in November, setting a new low since June. One leading DEX recorded $79.98 billion, while another DEX had $70.57 billion, both significantly lower than last month. The trading volume ratio of DEX to CEX slid from 17.56% in October to 15.73%.

Liu believes that this is more about changes in trading structure: when market volatility narrows, centralized exchanges appear more efficient due to better depth and smaller spreads, while the cooling of incentives and speculative enthusiasm on-chain has also dragged down the performance of DEX.

In terms of price, Bitcoin fell from around $110,000 in November to a low of about $81,000. As of now, it has dropped another 4.6% within the last 24 hours, priced at $86,500. Data from SoSoValue also shows that in November, there was a net outflow of $3.48 billion from the US Spot Bitcoin ETF, the largest monthly outflow since February.

StablecoinSkeptic · Accepted Answer

26.7% cut directly, the market trend in October really got people excited, it&#39;s time to calm down now.

rugpull_survivor · Answer

Another Bear Market signal, a direct 50% Slump of 26.7%. I&#39;m thinking it&#39;s time to drop the leverage.

This wave is indeed too cold, the craziness from October has returned.

Those who took profits should be feeling great, while I&#39;m just a Tied Up person silently bleeding here.

The exchange must squeeze out some Trading Volume before they Rug Pull, right? Anyway, I don&#39;t believe in any natural cooling period.

SleepyValidator · Answer

Oh no, it has shrunk again... 26.7% is so intense, it feels like that wave in October really blew people away, and now they are starting to Rug Pull.

ser_ngmi · Answer

Oh no, this shrinkage really hurts, 26.7% has been chopped off directly, it feels like October really got a bit too crazy

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Taking profits is just being cowardly, who doesn&#39;t want to make a bit more money

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Half-year low? This is the normal volume, the previous number was a bit absurd

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Even the leading exchanges have shrunk so much, it seems that Large Investors are really on the sidelines

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Gate can still hold 96.75 billion, at least it&#39;s not that bad

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Lower volatility means no opportunities, I prefer those crazy markets

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Wait, does this hint at a prelude to a year-end Rebound?

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Calm period = opportunity period, anyway, I&#39;m not in a hurry to exit

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If DEX is also like this, the whole market really has no heat

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Where is the promised bull run, why is it already cold in November?

DuckFluff · Answer

Damn, a 26.7% direct 50% Slump, how many people must feel terrible about this.

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October is ridiculously hot, now that the cooling period has come, it&#39;s directly cut to a six-month low... this pace is really something.

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I understand taking profits, but this volume... it feels a bit too fake.

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The top exchanges can still hold up, but other platforms seem to be under quite a bit of pressure.

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Vincent makes it sound easy, but I see how many stop losses will be triggered after this drop.

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DEX is cooling down too? Then the whole market is really wilting.

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With November being so cold, the exchanges that can hold on are the real deal.

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What does a decrease in volatility mean... the nightmare for short-term traders is here.