Let’s analyze how the cryptocurrency market performed in May, according to the data provided by CryptoRank!
May Performance of Cryptocurrencies
May was relatively quiet without significant fluctuations in either positive or negative directions.
There was a slight decrease indicating a calm atmosphere in trading volumes. The popular saying ‘sell in May and go away’ seems to imply that the summer can be quite unpredictable. May 2023 appeared particularly stagnant compared to the previous year when a series of negative events began.
As May came to an end, consecutive news in June triggered fear in the market and led to price declines.
Bitcoin had its weakest month since the beginning of the year and experienced predominantly negative returns in the first month of 2023.
At the beginning of May, meme coins saw a strong surge and reached a record trading volume of around $2.7 billion weekly. However, the trading volume later decreased, indicating a return to more typical trends. Unfortunately, many meme coins ended the month with negative price performance. The meme coins that dominated the market in May were PEPE and FLOKI.
TVLs Generally Showed a Decline
So far, 2023 has been a very positive year for DeFi. In many ways, it reflects the transition from centralized institutions to decentralized ones, triggered by FTX’s collapse.
Most blockchains experienced a decline in TVL in May, with only a few networks showing significant growth. It’s worth noting that Polygon zkEVM and other new layer 2 blockchains, especially zkSync and Starknet, continued to demonstrate TVL growth despite the market downturn.
However, when specific details are examined, Optimism stands out. First and foremost, there is an increase in trading volumes on decentralized exchanges (DEXs). Undoubtedly, this growth is related to the initial surge in meme coins at the beginning of the month. However, the trend appears to be much stronger than a one-time spike.
Decentralized exchanges are strengthening their positions amid a decline in trading volumes on centralized exchanges. As a result of these changes, the DEX-to-CEX ratio in spot markets has reached a new peak of nearly 22%.
This article was created with information provided to CoinOtag by data provider CryptoRank. Click here to access more data about the month of May.
