90% of Cryptocurrencies Have Near-Zero Daily Trading Volume Amid the Extended Crypto Winter
Trading data of a major cryptocurrency exchange shows that only over 200 cryptos were traded over the past 24 hours, and the remaining saw a nearly-zero trading volume, China’s blockchain news account Yiben Blockchain reported on Monday.
90% of cryptocurrencies in the exchange are not traded by investors anymore – hence the zombie-like state. Further, digital token funds stop investing in new projects,ICO-funded startups rush to cash out their ETH, and enthusiasm for crypto investment among native investors continues to decrease, thus driving the market into another ‘ Crypto Ice Age’.
“Only 33 cryptos have a daily trading volume of more than 100 ETHs. At least 90% of virtual currencies have no liquidity depth now, looking like a dead coin,” says Ge Huayi, a man who leads a quantitative investment team which monitors the data of the major digital assets trading platform.
The number of daily active users(DAU) of Huobi, the world’s third largest cryptocurrency exchange by daily trading volumes, has dropped below 10,000.
“ Huobi has over 50,000 DAU at its peak, but the current figure signals the market has entered ‘Ice Age’. If DAU slip below 5,000, it means the market may be hopeless,” Ge said.
On the other side, a wave of crypto projects shut down, and token issuers run away with investors’ hard-earning money.
China Academy of Information and Communications Technology (CAICT)’s survey published in May found that only 8 percent of over 80,000 blockchain projects launched globally are still actively maintained,and the average life span of these projects is only about 1.22 years. The reason behind the short-lived projects are that they lack users and fail to launch a commercial application.
Especially,a lot of public blockchain projects which caught the market’s attention in the last year also have gone dead. “ In fact, the majority of public blockchains have been dead,” says Cui Memeng, the founder of Achain.
There are three factors essential for public chains’ survival: true value, its ecosystem, and the community. But for now, most of public blockchain projects are still at a ‘white paper’ stage without any actual product.
“ An increasing number of crypto projects are cashing out their ETHs, and it happens everyday .” says a China-based token fund director . And his token fund suspended investment two months ago.
Over 10 crypto-focused funds in China told Yiben Blockchain that they stop pouring money into new projects.
On September 18, the cryptocurrency market cap plummet to $192 million, falling over 76% from its highest in January.For some market analysts, however, the extended crypto bear market is good for the long-term development of the blockchain industry because good money will finally drives out bad money, and many short-term speculators will be knocked out of the market.