Solana

Solana and Terra’s trading volume soared last year as bitcoin and ether fell

Solana and Terra’s trading volume soared last year, as bitcoin and ether dropped

Symbiosis

This year has not been good for price actions or bitcoin (BTC) nor ether (ETH), the top two cryptocurrencies by market capitalization. Bitcoin started this year at $47,370 but has since fallen to $38,945 at press time. When it comes to ether, the story is the same, if not worse, as the ether token started at $3,730 on January 1 and is now trading at $2,580.

Both major cryptocurrencies saw short rallies above $40,000 and $3,000 respectively, but the year so far looks bearish nonetheless. This gloomy sentiment has impacted trading volumes for both major cryptocurrencies.

150x increase in trading volume in one year

Zooming out, the past year has seen major shifts in business interest, according to Data provided by Santiment crypto analysts. There is no doubt that Terra’s LUNA and Solana’s SOL tokens have established themselves as the top ten market capitalization assets with very high trading volume, but this appears to have come at the expense of trading volumes for bitcoin. and ether.

Starting with Solana, a year ago, the GROUND the token was trading at $14.5 with a trading volume of just $94.7 million per day. A year ago, Solana’s market cap ranked the token around number 32, and today the token is ranked number eight. Currently, the SOL token is trading at $80.6, so far peaking at over $250 on November 7th last year, but the trading volume now stands at almost 1, $5 billion a day. That’s roughly a 150x increase in trading volume in one year.

Terra’s LUNA token has seen similar actions. A year ago, the LUNA the token was trading at $16 with a daily trading volume of just over $1 billion and a total market capitalization making the LUNA token rank around number 25. Today, the LUNA token is trading at $92.3, which is not far off the all-time token high at just over $103 set last week. Over the past year, the LUNA token has risen to seventh in terms of market capitalization, and the trading volume now stands at $2.8 billion per day.

Bitcoin trading volume reduced by a third

Meanwhile, bitcoin and ether trading volumes have fallen over the past year. And quite significantly. One year ago bitcoins the price was $60,000 with a daily trading volume of $60.25 billion. Trading volume has since declined to around $21 billion, peaking at over $126 billion in mid-May last year. This is only a third of the trading volume a year ago and just 17% of the trading volume at the peak in May last year.

Ether’s trading volume was $24.5 billion a year ago and has since fallen to around $10.5 billion per day today. Ether also peaked in mid-May last year with a transaction volume of $84.5 billion. As a result, Ether trading volume has fallen to less than half (42%) of what it was a year ago, and just 12% from the peak in mid-May.

The conclusion seems to be that market interest, as reflected by trading volume, follows potential trading profits. Tokens, even larger ones, receive less interest during bear markets, while tokens with lower market caps attract attention by having greater potential for growth as prices rise.

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