According to a recent report from CryptoCompare, there was a spike in spot trading volumes for the crypto market in August 2022, indicating that investors may be tenacious amidst the market winter. Despite its best efforts, the cryptocurrency market has yet to regain its pre-winter highs. This is not to say that investors haven’t been looking for opportunities.
Trading Volumes Spike Across Products
CryptoCompare stated that spot trading on centralized cryptocurrency exchanges increased by a healthy 26.8%, reaching $1.91 trillion. This achievement made August the second-highest month in 2022 regarding spot trading volumes. This spike indicates that investors are still scouring the market for opportunities.
The report further revealed that the derivatives market also gained market share, with trading volumes across centralized exchanges increasing by 1.91% to $3.61 trillion. This was the first increase in the metric in three months. Nonetheless, the increase in derivatives trading volumes was not comparable to that of spot trading, which is quite unusual in a volatile market like crypto.
However, the report was not entirely positive. In August 2022, aggregate volumes of Bitcoin and Ether futures contracts on the Chicago Mercantile Exchange (CME) fell by 20.7% to $28.9 billion, the lowest volume since December 2020.
Investors Flocking Back to the Market?
The increase in overall trading volumes is a positive sign for the crypto market. Asset prices have fallen in recent months, with coins continuing to suffer as the traditional economy struggles.
The increase in volumes could also be attributed to institutions’ continued entry. BlackRock, the world’s largest asset manager, has partnered with cryptocurrency exchange Coinbase to provide crypto trading services to its institutional clients.
Fidelity Investments, an asset manager with over $4.2 trillion in assets under management, is also said to be working on bringing cryptocurrency trading to its 34.4 million+ customers. Just this week, Nasdaq was reported to have launched a new digital asset division to provide its customers with a wide range of crypto services, beginning with crypto custody.
Institutional investment has always been beneficial to the cryptocurrency market. The entry of large companies like Block Tesla and MicroStrategy, which bought a total of nearly $5 billion in crypto, fueled the previous bull run.
Not Out of the Woods Yet
When it comes to cryptocurrency, investors should be cautiously optimistic. The market remains highly volatile, especially with traditional economic forces still exerting a strong influence on coin prices.
The Federal Reserve published higher-than-expected inflation figures for August 2022, boosting the likelihood that interest rates will be raised even further this month. If this occurs, markets will be shaken, and crypto will be no exception.
There is concern that the entire market may be in for a long winter.
Tamadoge: An Interesting Earning Opportunity
Despite concerns about a long winter, the crypto market remains replete with various assets that could provide excellent earning opportunities. TAMA, the Tamadoge native token, is one such asset.
Tamadoge is a blockchain gaming project that allows players to purchase NFTs representing digital pets. It bills itself as a “play-to-earn Dogecoin.” These pets can be groomed and used in battles against other players’ pets, with winners receiving TAMA rewards.
The TAMA presale ended this week, with the token raising $19 million for its developers. This capital haul surpassed that of Ethereum, the second-largest cryptocurrency, at the time of its launch. With TAMA now expected to list on centralized exchanges, investors should consider it a potential source of significant upside.
Related News
- Ethereum Classic Miners Running Into Costly Issues Selling ETC in Spot Market
- US Stocks Crash as Inflation & Rate Hike Worries Resurface after August CPI
- Nasdaq to Provide Crypto Custody Service, Expects ‘Mass Institutional Adoption’ of Digital Assets
Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
- Deflationary, Low Supply - 2 Billion
- Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
- Move to Earn, Metaverse Integration on Roadmap
- NFT Doge Pets - Potential for Mass Adoption
This article was written for Business 2 Community by Jimmy Aki.
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