Token Liquidity Plummets Leaving Bag Holders High and Dry

Despite cryptocurrency prices having plunged 80-95% from the start of the year, traders aren’t taking a punt on the bargain. Token volumes have plummeted across major exchanges with 60% of listed cryptocurrencies trading below January levels. Order books are now filled to the brim on the sell side with November, to date, seeing an acceleration in depreciating volumes.

Over 20% of cryptocurrencies that remain listed on major exchanges (see note on examined exchanges) now have less than 90% of the trading volumes they witnessed at peak hype in January. More than half of those are effectively dead in the water with no traders looking to buy.

|| WHAT ABOUT THE FLIP SIDE?

On the other end of the spectrum, 102 of 410 tokens that have seen volumes increase by more than 100% January vs October. November however shows that this number now dropped to 91 within less than a month. And the remaining tokens that have found some increase in volume are only a handful.

|| APPLES AND ORANGES?

Liquidity from one exchange to the other differ however – quite dramatically in some cases. For Poloniex, quite literally all listed tokens have less trading volume than the start of the year. In the case of Bittrex – three tokens (see interactive chart below). The outliers, by reported volume atleast, are OKEx and Huobi, with Binance having a fairly equal share of trading volumes across the percentage bands. Just under half of Binance’s listing have decreased volumes compared to the start of the year.

|| OUT WITH THE OLD, IN WITH THE NEW?

No. Over 75% of the tokens that have been added to exchange this year have seen their volumes in complete decline October versus November (see chart).

The article was provided by our partner Diar.

No. of Tokens and % of Volume +/- For Jan vs Oct-2018

No. of Tokens and % of Volume +/- For Jan vs Nov-2018

Nov vs Oct Volumes of Coins Added in 2018