Try Quests to earn cryptoMarket Volatility
In this analysis, You will read about Market Volatility from May 7th to May 15th. I went through Decentralized exchanges on Ethereum. Do you think what did the volume look like? Which assets were being sold or bought most?
In order to find a swap in and swap out the volume in USD, I used flipside_prod_db.ethereum_core.ez_dex_swaps table. Then sum the total amount in and amount out. Amount in Means sell and amount out means buy. I filtered the date to see only the second week of May.
The below chart shows the total buy and sells volume on Ethereum decentralized exchanges on Ethereum from May 7th to May 15th. There were two unusual activities on Ethereum DEXs I exclude one of them in my results. The token name is SHINJA and the other one is PN. I only eliminate SHINJA token. As you can see the average sell volume was under 1B dollars but on May 13th, The total sell volume reached 4B dollars. Also on May 9th, the total volume approached 1.4B dollars. It seems users sold their tokens more than buy. On other days in the second weeks of May, the Buy and sell volumes are similar to each other. When the market crashed, some users prefer to hold their tokens and some users prefer to swap their tokens for stablecoins. The third category of people buys more than ever because they believe the red market is the best time to buy a token.
The below cumulative daily chart shows From May 12th to May 13th, The total sell volumes almost doubled. It was 4B dollars on May 12th but on May 13th reached 8B dollars. I can conclude from this chart that users are selling their tokens more than buying on Market Voladility.
Let's look at Daily tokens that users have sold during the market volatility. PN had unusual activities on May 9th and May 13th. We can exclude this token from our analysis. The highest amount of tokens in USD that have been sold is ETH. Only on May 12th, nearly 550M us dollars of ETH have been sold. The second token is USDC. This category of users prefers to buy other tokens. So they sold their USDC which is stablecoin and buy a token.
The trends in buying tokens are similar to selling activities. On the other hand of selling, Users were buying ETH and USDC. Even numbers are similar to each other. Nearly 550M ETH was bought on May 12th and about 200M us dollars users were bought USDC.
If I exclude the PN token, in The second week of May users were selling about 2.5B dollars of ETH. About 1.1B dollars of Stablecoins (USDC, USDT, and Dai) have sold during the market volatility.
As I said before, The trends of Buy and Sell were similar to each other. In the second week of May, About 2.24M dollars of ETH were bought by users. Also, about 1.1B dollars of stablecoins were bought by users. Including USDC, USDT, and DAI.
There are three kinds of users during Volatility.
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Swap Tokens to Stablecoins: Users prefer to swap their tokens to Stablecoins and watch the market. When the market becomes more stable, They decide to buy.
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Buy tokens with Stablecoins: These types of users prefer to buy when the market crashed.
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Holders: These types of users prefer to hold their tokens whatever it is.
Written By Hess
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discord_id: hess#0890
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twitter_id: @hessaminanloo