Shibaswap saw a sharp drop in trading volume in July due to a drop in liquidity flowing into alternative coins (altcoins) listed on the platform.
Shibaswap tested a new low in July despite multiple recovery attempts in digital asset prices.
According to Be, the decentralized exchange (DEX) recorded around $185.61 million in July[In]Crypto research based on data from Dune Analytics.
While this reading might seem impressive given the relatively lower volumes recorded by other DEXs, it was down 0.93% from June. Shibaswap volume for June was about $187.35 million.
With the new low, Shibaswap also saw an 89% year-on-year plunge in trading volume since July of last year.
The trading volume in July 2021 was around 1.85 billion US dollars. The latest stat was also $72 million below volume for this year’s high of $258.22 million in May.
New to Shibaswap?
Launched on July 6th, 2021, Shibaswap is the native decentralized exchange of the Shiba Inu project. The DEX offers the same features as other competitors such as token swapping and liquidity pools.
What caused the volume drop?
The negative market sentiment that took root in May worsened in June and was prolonged into July, which weighed on Shibaswap’s fortunes as it supports low-cap cryptocurrencies that are not seeing high daily trading volumes.
Aside from Shibaswap, competing DEXs like Synthetix, Curve Finance, SushiSwap, Balancer, Uniswap, DODO, and Ox Native also fell to new volume lows.
SHIB price reaction
SHIB opened on July 1 with a trading price of $0.00001033, hit a monthly high of $0.00001307, tested a monthly low of $0.000009833 and closed the month at $0.00001171.
Overall, there was a 13% gain between SHIB’s July open and close, despite a drop in volume.
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