The cryptocurrency market has seen dwindling price volatility in recent months, with research firm Kaiko suggesting that the launch of Bitcoin spot ETF products may be a contributing factor, potentially weakening market fluctuations. Meanwhile, both Ethereum and Bitcoin NFT markets are experiencing a sharp decline in trading volume, reflecting a sluggish market environment.
Bitcoin Weekend Trading Volume Drops to Historic Lows
Cryptocurrency market liquidity has historically been prone to significant fluctuations during weekends when U.S. stock markets are closed. However, Kaiko's latest report reveals that Bitcoin’s weekend trading volume has fallen to its lowest level ever.
As shown in the data, Bitcoin's weekend trading volume as a percentage of weekly activity has dropped from a high of 28% in 2019 to just 16% today.
Key Reasons Highlighted by Kaiko and Bloomberg
Kaiko attributes this trend to the introduction of Bitcoin spot ETFs, explaining that many new investors are restricted to trading ETFs only on weekdays:
The decline in weekend trading volume has been a multi-year trend, but ETFs have accelerated this shift.
On the other hand, Bloomberg points to last year’s collapse of crypto-friendly banks—including Signature Bank and Silicon Valley Bank—as another major factor. The loss of 24/7 trading support and reduced participation from market makers have further diminished liquidity:
Since these banking channels shut down, market makers have been hesitant to provide liquidity in low-volume conditions.
These insights offer a plausible explanation for the current stagnant market conditions.
👉 Bitcoin ETFs and Market Liquidity: What Investors Should Know
NFT Market Sees 40% Drop in Q2 Trading Volume
The downturn isn’t limited to cryptocurrencies—NFT markets continue to struggle as well.
According to CryptoSlam, NFT trading volume declined from $4.14 billion in Q1 2024 to just $2.32 billion in Q2, marking a 44% drop. Unlike the bull run of 2021, NFT prices failed to rebound significantly even during last year’s crypto rally.
Apollo Crypto’s chief investment officer attributes this slump to the rise of politically themed memecoins, which have diverted attention from NFTs:
Memecoins tied to the U.S. election have stolen the spotlight, leaving NFTs struggling for relevance.
Meanwhile, Bitcoin-based NFTs—such as Ordinals and Runes—are also failing to regain traction.
👉 Are Bitcoin NFTs Still Worth Investing In?
Runes and Ordinals Trading Plummets Over 90%
Bitcoin’s NFT ecosystem, including Ordinals inscriptions and Runes tokens, has seen a dramatic drop in activity.
- Runes trading volume: Down 88% from June highs.
- BRC-20 tokens: Collapsed by 97% since March.
- Ordinals: Fell 50% from peak levels.
Shockingly, daily transaction fees from Ordinals and Runes now contribute less than 2 Bitcoin per day—a far cry from the record 884 Bitcoin generated on April 24 (Runes launch day).
Originally, these protocols were hailed as a new revenue stream for Bitcoin miners post-halving. However, their impact on transaction fees has been minimal.
FAQ Section
Q: Why is Bitcoin’s weekend trading volume declining?
A: The rise of spot ETFs (weekday-only trading) and the loss of 24/7 banking support have reduced liquidity.
Q: Are NFTs dead?
A: No, but trading volumes have slumped due to competition from memecoins and shifting investor interest.
Q: Can Runes and Ordinals recover?
A: Possible—if developer activity and utility improve—but current metrics show weak demand.
Risk Disclaimer
Cryptocurrency investments carry high risk. Prices can fluctuate wildly, and investors may lose their entire capital. Always assess risks carefully.