- Recent shifts in the crypto industry have caused a change in trading volumes, with average weekend volume dropping by 10% and weekday volumes rising by 16%.
- The closure of Silvergate Exchange Network (SEN) and regulatory changes are two main factors attributed to this shift.
- Silvergate’s payment platform enabled 24/7 settlement, but it collapsed in March, leaving the crypto industry without its services.
Crypto Trading Volumes Drop Following SEN Closure
Recent shifts in the crypto industry have brought about significant routine changes in trading volumes throughout the week. The market performs better on Monday-Friday and less on weekends, contrary to the previous 24/7 routine. The average trading weekend volumes have dropped by 10%, while the weekday volumes have risen by 16%, according to digital assets data provider, Kaiko.
Closure of Silvergate Exchange Network (SEN)
Conor Ryder, a research analyst at Kaiko, attributed the shift to the closure of Signet and Silvergate Capital Corp.’s Silvergate Exchange Network (SEN), mainly in the American market. Signet is the real-time payment for crypto firms run by Signature Bank which has since collapsed. With SEN closed market-makers had to rely on traditional payment routes mostly closed on weekends shifting more trades towards workdays.
Uncertain Crypto Regulations Affect Weekly Trading Volumes
In addition to SEN’s closure, Ryder noted that uncertain crypto regulations are affecting weekly trading volumes as well. Crypto firms prioritize 24/7 settlement more when jurisdictions are friendlier but these platforms are not available currently due to their collapse or changing regulations.
“Goodbye Regular Banking Hours” – Silvergate’s Payment Platform
Prior to its collapse, Silvergate had a payment platform for crypto clients which allowed them to transact round the clock as part of their services – “Goodbye regular banking hours. Hello, 24/7”. Now that it is gone many market watchers have been focusing on liquidity and trading volumes which decreased during 2022’s blowups as retail investors abandoned markets.