February has often been a rollercoaster month for cryptocurrency, delivering a mix of thrilling recoveries and sharp declines depending on the market cycle. This year was no exception.
After a fantastic January that saw all major cryptocurrencies rally, February brought a wave of volatility. All top cryptocurrencies took a hit, with Solana and Dogecoin suffering the most, each plunging over 40% by the month’s end.
Bitcoin, which had been riding high above $100 000, tumbled 21%, settling around $80 000 at the time of writing. The sudden drop triggered both panic selling and strategic buying, driving trading volumes through the roof.
According to data presented by CryptoPresales.com, Bitcoin’s trading volume surged by $650-billion in February.
Much like September and October, February tends to be an unpredictable month for crypto, often serving as a transition into stronger market performances in March and April. If January is bearish, like in 2018 and 2022, February usually struggles to break out of the downtrend. On the other hand, in some bull market years like 2013, 2017, and 2021, February has marked the start of major price surges.
Generally, if the crypto started the year strong, February often continues the trend. However, that wasn’t the case last month.
After a spike in January, February saw crypto prices nosedive, fueling a surge in trading activity. While some investors seized the opportunity to buy at lower prices, many engaged in panic selling, flocking to stablecoins for security.
The CoinMarketCapa data show that Tether, the leading stablecoin, witnessed a 48% spike in trading volume, soaring to a staggering $4,15-trillion in just one month. Bitcoin remained the second most-traded crypto, hitting $2,33-trillion in trading volume, or 37% higher than in January. All other top-traded cryptos have also seen a double-digit trading volume growth.
Ethereum, for example, recorded $919,8-billion in transactions, marking a 58% increase from January. USDC and XRP followed with 41% and 14% jumps, reaching $369-billion and $214-billion in trading volume, respectively. First Digital USDC witnessed the biggest monthly increase among all top cryptos, with its trading volume soaring by 95% to $329-billion. Solana and Dogecoin followed with around 20% increase and $136-billion and $66-billion in monthly trading volumes, respectively.
The cumulative trading volume of the top 10 cryptocurrencies underscores February’s explosive trading activity. Statistics show the combined monthly trading volume of the ten most traded cryptos stood at $6,08-trillion in January. By the end of last month, that number had shot up by $2,5-trillion, reaching $8,6-trillion in total.