The lethargic state of our crypto market has been spotlighted as crypto spot trading hits its lowest point since March 2019, as per the comprehensive data from CCData. The recent tallies express a 7.78% slump in volume on centralised exchanges, down to $475 billion in August, while derivatives trading volume saw an over 12% plunge to $1.62 trillion—its second most dipped figure since 2021. Intriguingly, perturbing rallies such as Grayscale’s court victory over SEC failed to ignite sufficient stimulation. With low spot trading volume and wavering interest data, the prevailing scenario indicates a market dominated by speculation.
In parallel, a rather intriguing development is emerging from South Korea. Mirae Asset Securities, a leading investment banking entity working in liaison with the Polygon network, is advancing the tokenization within finance. Tokenization involves translating real-world assets like bonds, equities and physical properties into digital tokens tradable on the blockchain. This supposedly enhances transaction efficiency, transparency, and liquidity. By structuring infrastructures for the issuance, exchange, and distribution of tokenized securities, the $500 billion asset manager is stepping into the footsteps of other institutions like Franklin Templeton.
Moreover, in the ETF landscape, the BZX exchange of Cboe is gearing up to enlist spot Ether (ETH) ETFs of Ark 21Shares and VanEck with Coinbase slated to facilitate surveillance-sharing for the said products. This move mirrors its potential role in a plethora of spot Bitcoin (BTC) ETFs. However, with the SEC extending its decision period to 240 days and having a history of prolonged delays and denials for bitcoin products, the fate of ether ETF applications hangs in a balance.
However, a sobering reality signalled by Google Trends shows the worldwide search query for “cryptocurrency” reaching its all-time low this week—the lowest in the past three years. This indicates a shrinking general interest in digital assets. Historically, low values like this has marked bear market bottoms, while high values nearing 100 flagged bull market peaks.
In sum, we are in a market conspicuously driven by speculation while also showing signs of advancements with institutional embracement of tokenization and ETF exploration. But the dwindling public interest signifies an alarming concern, potentially forecasting a bearish market trend. The question is, will these advancements revive the interest level, or is the market heading towards an inevitable dip?
Source: Coindesk
