Shibaswap saw a steep fall in trading volume in July due to a decline in the liquidity poured into alternate coins (altcoins) listed on the platform.
Shibaswap tested a new low in July despite several attempts at recovery by digital asset prices.
The decentralized exchange (DEX) recorded approximately $185.61 million throughout July, according to Be[In]Crypto Research based on data from Dune Analytics.
Although this value may seem impressive due to the relatively lower volumes recorded by other DEXs, it was a 0.93% decrease from June. Shibaswap volume for June was about $187.35 million.
With the new low, Shibaswap also saw an 89% plunge year-over-year in trading volume from July of last year.
Trading volume was around $1.85 billion in July 2021. The latest statistic was also $72 million below volume for this year’s high of $258.22 million in May.
New to Shibaswap?
Launched on July 6, 2021, Shibaswap is the native decentralized exchange of the Shiba Inu project. The DEX provides the same functions as other competitors such as token swapping and liquidity pools.
What caused the decline in volume?
The negative market sentiment which gained roots in May worsened in June and was extended to July resulting negatively in the fortunes of Shibaswap since it supports low-cap cryptocurrencies which do not see high daily trading volumes.
Aside from Shibaswap, competing DEXs such as Synthetix, Curve Finance, SushiSwap, Balancer, Uniswap, DODO, and Ox Native also descended to new lows in volume.
SHIB price reaction
SHIB opened on July 1, with a trading price of $0.00001033, reached a monthly high of $0.00001307, tested a monthly low of $0.000009833, and closed the month at $0.00001171.
Overall, despite a drop in volume, there was a 13% increase between the opening and closing price of SHIB in July.
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Original Source: https://beincrypto.com/shibaswap-volume-crashes-more-than-1-6b-in-yearly-low/
Author : Raphael Minter