October has the lowest daily trading volume. The market appears to be recovering, despite the poor daily trade numbers.
This month still sets a record low for an average daily aggregate product volume across all digital asset investment products, despite the crypto market showing signs of a gradual recovery with Bitcoin (BTC$20,149) holding above the psychologically significant $20,000 level after its initial crash to $17,600 in June. The average daily trading volume for institutional cryptocurrency products has decreased 34.1% to $61.3 million in October, according to a research from CryptoCompare that was released on October 27.
The average daily volumes for almost all the items examined in the research decreased significantly, falling anywhere between -24.3% and -77.5%.With a small exception for May 2022, the declining trend in daily trading predates the recent market turbulence and may be traced all the way back to November 2021. Since September 2020, this October is the second time that the average daily volumes have decreased below $100 million.
The analysis does find some encouraging trends in other market indicators. In comparison to September, the total assets under management (AUM) for all digital asset investment products increased by 1.76% to $22.9 billion. Since July, the AUM had not increased prior to this. In October, AUM for trust products, which make up 77.3% of the market, increased by 2.34% to $17.7 billion, while AUM for exchange-traded funds (ETFs) decreased by 1.59% to $2.21 billion.Net flows are another key indicator.
Weekly net flows for Bitcoin-based products in October saw average inflows of $8.37 million, with average outflows of $5.03 million for short Bitcoin-based products. Ether (ETH $1,496) products, which recorded the second-largest negative net flows of $2.87 million, are in a much worse situation. By Oct. 26, the native ETH token of the Ethereum blockchain had outperformed BTC, rising about 14% to hit its weekly high of $1,554. At the time of publication, the cost of ETH is $1,508.
