- Dogecoin trading volumes shot up 1,250% to close to $US1 ($AU1) billion in the second quarter, data shows.
- Overall global trading volumes rose 32% to $US18.82 ($AU26) billion a day on average amid volatile markets.
- High volatility benefits exchanges but there are signs that the crypto crash is weighing on volumes.
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The average trading volume for dogecoin shot up to $US995 ($AU1,353) million per day in the April to June period, from just $US74 ($AU101) million a day in the first quarter, as exchanges such as Coinbase, eToro and Gemini added the token amid booming interest.
Coinbase’s Q2 market barometer showed that ether trading volumes rose 53% quarter-on-quarter to an average of $US3.25 ($AU4) billion a day on global exchanges. Meanwhile, bitcoin’s daily volumes fell 14% to $US4.01 ($AU5) billion.
Cryptocurrency prices hit record highs in the second quarter before falling sharply as China cracked down on bitcoin “mining” and Elon Musk turned against the biggest cryptocurrency over its energy use.
Dogecoin started the year at around $US0.004 but soared more than 15,000% to above $US0.70 ($AU1) in May. It has since slid to around $US0.18 ($AU0) on Friday. Bitcoin fell from a record high of $US65,000 ($AU88,384) in April to Friday’s price of around $US32,000 ($AU43,512).
However, the period may still have been a profitable time for crypto exchanges, despite the plunge in prices.
Overall global trading volumes rose 32% to an average of $US18.82 ($AU26) billion a day in the second quarter, boosted by a 44% rise in volumes in Asia to $US8.98 ($AU12) billion a day. Coinbase’s figures cover crypto-fiat trades, but not crypto-crypto trades.
Last week, Goldman Sachs analysts said in a note that “significantly elevated crypto asset volatility” could be good for Coinbase’s second-quarter earnings by boosting trading volumes and fees, Coindesk first reported. Just under 90% of Coinbase’s revenue came from transactions in the first quarter.
Yet, a report from CryptoCompare said trading volumes at the biggest crypto exchanges fell 43% in June as prices consolidated at a lower level and volatility dropped.