Conversely, during bearish periods, trading volumes start to dwindle, with bursts of activity around periods of deleveraging. Uncertainty, negative news, regulatory crackdowns, or market corrections often lead to a decline in trading. Investors might adopt a wait-and-see approach, leading to decreased transaction volumes, and they might move their assets to cold storage or stablecoins, reducing the overall trading activity on exchanges.
Measuring Blockchain Adoption, Utility, and Health with On-Chain Transaction Volume
