Amid the booming digital currency market, CEX spot trading volume has recently fallen to a three-year low. Shockingly, in 2018, the Ethereum (ETH) reserves held by exchanges hit a record low. This trend has attracted widespread attention in the market and has also given investors and industry observers a lot to think about. This article will conduct an in-depth analysis from multiple angles to reveal the reasons and potential impacts behind it.

From the perspective of market data, CEX spot trading volume has fallen to a three-year low, which reflects the current overall situation of the digital currency market. As the cryptocurrency market matures and regulation becomes increasingly stringent, investors' trust in and selection criteria for exchanges are also changing. In the past few years, CEX exchanges have been the main venue for digital currency trading. However, with the rise of new trading methods such as DeFi, some investors have begun to turn to decentralized exchanges (DEX), which has led to a decline in CEX spot trading volume.

In 2018, the Ethereum (ETH) reserves held by exchanges hit a new low, which has caused market concerns about the supply of digital currency markets. As an important blockchain platform and digital currency, Ethereum's application in DeFi, NFT and other fields continues to expand, and its demand continues to grow. However, the ETH reserves held by exchanges are constantly decreasing, which may have an impact on market liquidity and price stability. Investors need to pay close attention to this data to formulate corresponding investment strategies.

Regarding the phenomenon of declining CEX spot trading volume and record low ETH reserves of exchanges, market analysts pointed out that this may be related to changes in market demand structure and trading habits. With the continuous evolution of the digital currency market, investors' selection criteria for exchanges are also changing. Factors such as security, trading experience, and handling fees have become important considerations for investors to choose exchanges, while CEX and DEX each have their own advantages, and investors' choices are more diversified.

In the context of fierce competition in the current digital currency market, CEX exchanges need to continue to innovate and optimize services to attract more users and funds. At the same time, changes in the regulatory environment also bring challenges and opportunities to exchanges. Only by constantly adapting to market changes and improving their own competitiveness can they remain invincible in the fierce market competition.

In general, the decline in CEX spot trading volume to a three-year low and the record low ETH reserves of exchanges have aroused market attention and thinking. The development of the digital currency market is full of variables and challenges. Investors and industry observers need to remain vigilant, keep abreast of market trends, and formulate appropriate investment strategies. Only by constantly learning and adapting to market changes can we remain invincible in the fierce market competition. As the digital currency market continues to develop, we also look forward to seeing more innovations and breakthroughs, bringing more opportunities and vitality to the entire industry.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120BTC.COM) News: Bitcoin (BTC), which had hit a record low in volatility, suddenly plunged more than 10% on the 18th and fell below $26,000, setting the largest drop since the FTX crash in early November last year. In the past 7 days, Bitcoin has plunged 11% to $26,093, while Ethereum has plunged more than 10% to $1,666.

Market trading volume is below average

It should be noted that the cryptocurrency market trading volume has been below average for a long time. CryptoQuant data shows that due to the large amount of liquidation triggered during the market crash, the trading volume of cryptocurrency spot and derivatives surged last Thursday, but now the trading volume has dropped sharply again.

Changes in Bitcoin spot and derivatives trading volume

The Kaiko report shows that due to market stagnation, the volatility of the cryptocurrency market continued to decline in August. Although the liquidity of international exchanges has improved, the spot trading volume has fallen across the board. The average daily trading volume in the past four months has hit a new low since October 2020, when the price of Bitcoin was $10,000 and Ethereum was $350.

Changes in the average daily trading volume of centralized exchanges

As the currency market plummeted, CoinShares reported that the cryptocurrency investment products of asset management companies such as Grayscale, Bitwise and ProShares saw a capital outflow of $55 million last week, which was different from the inflow of $28.5 million the previous week. CoinShares believes that this is mainly affected by the market sentiment that the Bitcoin spot ETF will not be approved soon.

CoinShares research director James Butterfill said that the market volume is far below average, mainly affected by seasonal factors, making prices vulnerable to large transactions. Last week's panic caused the total assets under management of related institutions to fall by 10% to $32.3 billion.

Exchange ETH reserves hit a new low since 2018

In terms of Ethereum, according to Lookonchain monitoring, Ethereum co-founder Vitalik
Buterin's related wallet address vitalik.eth repaid 251,000 RAI on Maker yesterday and withdrew 1,000 ETH, and then transferred 600 ETH to Coinbase, suspected of selling.

However, on-chain data shows that most ETH holders have not followed up on Vitalik Buterin's move.

According to Glassnode data, the number of ETH held by exchanges is currently at its lowest level since 2018. CryptoQuant data shows that since August 7, the exchange's ETH reserves have decreased by 2.5 million to 14.9 million ETH. The decline in ETH reserves can be interpreted as traders are transferring ETH to cold wallets for storage until the market environment improves, rather than selling.

Changes in ETH reserves of exchanges