Upheaval in the crypto industry is probably not the best word to describe the calamity of the collapse of FTX and its impact on the digital asset sector. There are still too many unknowns that will take weeks or months to sift through to assess the damage to the industry. Trust has been decimated, policymakers have been instilled with renewed vigor to oversee and regulate the industry, and the critics are engaged in a pile-on, a frenzy of I told you so… Of course, this has had an effect on digital asset trading, and, according to Coinshares, trading volumes have reached a new two-year low of $677 million for the week.
According to Coinshares’ weekly report, digital asset investment products experienced a minor inflow of $8.8 million. Bitcoin saw inflows totaling $17 million, this being described as a steadily improving sentiment since mid-November, with inflows since then now totaling $108 million, representing 2.1% of total assets under management (AUM). Short-bitcoin saw outflows for the second consecutive week totaling US$3.9 million
Ethereum saw a 4th consecutive week of minor outflows totaling $2.4 million and since mid- November, has seen outflows totaling $22 million.
Little activity was seen in altcoins, with minor inflows moving into Solana totaling $0.4 million and minor outflows from Polygon totaling $0.5 million.
Blockchain equities are not faring any better with $6.6 million exiting the investments.
According to Coinmarketcap, aggregate crypto value stands at around $840 million, far below the $3 trillion seen in 2021. Trading remains dominated by Bitcoin and Ethereum, with BTC trading at around $17,000. Bitcoin started the year at over $40,000.