Recent months have seen subdued price movements across cryptocurrency markets. Research firm Kaiko suggests that the introduction of Bitcoin spot ETF products may be contributing to reduced market volatility. At the same time, both Ethereum and Bitcoin NFT markets are experiencing sharp declines in trading activity, painting a bleak picture for digital collectibles and related assets.
Weekend Bitcoin Trading Volume Reaches All-Time Low
Cryptocurrency liquidity has historically been prone to significant fluctuations over weekends, coinciding with the closure of U.S. stock markets. However, a recent Kaiko report highlights that Bitcoin’s weekend trading volume has dropped to its lowest level on record.
Data reveals that the proportion of weekly Bitcoin trading volume occurring on weekends has declined sharply—from a high of 28% in 2019 to just 16% today.
Key Factors: Bitcoin ETF Launch and Banking Sector Instability
Kaiko attributes this trend largely to the launch of Bitcoin spot ETFs. Since these financial instruments are only tradable on weekdays, new investors are more restricted in their trading activity:
The decline in weekend trading is a multi-year trend, but ETFs have accelerated this shift.
Bloomberg offers an additional explanation, pointing to last year’s collapse of several crypto-friendly banks—including Signature Bank and Silicon Valley Bank—as another major factor. The loss of these institutions, which supported 24/7 trading operations, reduced the number of active cryptocurrency investors and diminished market makers’ willingness to provide liquidity during already low-volume periods.
Together, these factors help explain the current stagnation across digital asset markets.
NFT Trading Volume Falls 44% in Second Quarter
The cooling trend isn’t limited to cryptocurrency trading. NFT markets, which have been declining for some time, are also reflecting this broader slowdown.
According to CryptoSlam, NFT trading volume fell from $4.14 billion in the first quarter of this year to just $2.32 billion in the second—a drop of approximately 44%.
Even during last year’s crypto market upswing led by Bitcoin, NFT markets failed to regain the explosive momentum seen in 2021.
An investment executive at Apollo Crypto cited the recent wave of U.S. election-themed meme coins as drawing attention and capital away from NFTs. He also noted:
With several Bitcoin L2 solutions gaining traction, we believe Bitcoin Ordinals could continue to capture market share and interest within the NFT space.
Runes and Ordinals Volumes Drop Over 90% in June
Despite early enthusiasm, Bitcoin-based NFTs—including Ordinals inscriptions and Runes tokens—are failing to sustain trader engagement.
Dune Analytics data shows that Runes trading volume is down 88% since its June peak. Similarly, BRC-20 token volume has fallen 97% from its March high, and Ordinals trading is down roughly 50%.
More strikingly, daily transaction fees generated by Ordinals and Runes protocols over the past week averaged less than 2 Bitcoin—a far cry from the record 884 Bitcoin paid on April 24, the day Runes launched.
Originally promoted as new revenue streams for Bitcoin miners, Ordinals, BRC-20, and Runes were expected to help offset economic pressures following Bitcoin’s fourth halving event. So far, however, these token standards have not delivered significant or lasting benefits in terms of transaction fee revenue.
Frequently Asked Questions
Why has Bitcoin weekend trading volume declined?
The approval of Bitcoin spot ETFs has attracted more traditional investors who trade only on weekdays. Additionally, the collapse of crypto-friendly banks reduced the number of market makers providing liquidity during weekends.
Are NFT markets recovering?
Currently, NFT trading volume is down significantly compared to earlier this year. The rise of political meme coins and shifting investor interest appear to be contributing to the decline.
What are Bitcoin Runes and Ordinals?
Runes and Ordinals are token standards on the Bitcoin blockchain that enable the creation of NFTs and fungible tokens. Despite initial hype, their trading activity and fee generation have fallen sharply in recent months.
How has the crypto banking crisis affected trading?
The failure of several banks that served crypto businesses limited access to round-the-clock trading services and reduced market liquidity, especially during off-peak hours.
Is now a good time to invest in NFTs?
NFT markets are highly volatile and currently experiencing a downtrend. Investors should perform thorough due diligence and consider market timing, project credibility, and personal risk tolerance.
What alternatives are gaining traction besides NFTs?
Meme coins, especially those tied to current events or political themes, have recently captured more retail interest. Additionally, Explore more strategies around emerging Bitcoin L2 solutions may offer new opportunities.
Cryptocurrency investments carry significant risk. Prices can be extremely volatile, and investors may lose their entire principal. Always assess your risk tolerance and conduct careful research before investing.