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Crypto exchanges are seeing over $2 trillion in volume this month, setting a new all-time high record. Data from The Block’s volume index shows that the month of May is the fourth month in a row where crypto trading platforms saw more than $1 trillion in volume.
Crypto Exchanges and NFT Trading Volume Increases Despite Market Crash
Popular cryptocurrency exchange Binance continues to be the number one spot for crypto-to-crypto exchanges having seen nearly $1.5 trillion worth of trading volume this month.
At the same time, the US-based Coinbase cryptocurrency exchange remains the top contender for the fiat-to-crypto trading venues.
Amid the Chinese regulators announcing a clampdown on cryptocurrencies last week, the crypto market was sent into turmoil with the exception of the NFTs seeing increased trading volume.
Despite the market crash, users purchased, traded, and sold an average of 85,787 NFTs, with a total value of $5,8 million per day. This shows an increase of 277% in comparison with January, with an average of 21,815 NFT sales per day.
Chinese Traders Moving to OTC Platforms to Defy Crackdown
Chinese crypto traders are reportedly continuing to trade in the crypto market by using over-the-counter (OTC) platforms despite the government renewing its call for crypto mining, trading crackdown.
OTC platforms are for assets not listed on a formal exchange or traded via a private book. Such platforms allow accredited traders to invest more privately.
Reportedly, traders have been doing this since China initially imposed tighter restrictions in the crypto market around 2017.
However, using OTC platforms with separate fiat-based payments platforms makes crypto transactions difficult to be traced, which overall makes it harder for the regulators to complete the ban.
Earlier this month, Chinese regulators ordered banks and payments firms to identify and block suspicious transactions linked to cryptocurrency transactions and to not provide any services related to digital assets.
However, the use of OTC platforms by crypto investors makes it difficult for an outright ban as it’s difficult to trace crypto transactions when using such platforms while holding any one individual accountable.