Monthly crypto exchange volume tumbled in May, hitting 32-month low
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Although there are a lot of builders in the crypto space, the total money being invested into the crypto market has hit 32-month lows in May.
Cryptocurrency monthly exchange volume, which calculates spot market volume across all crypto exchanges, was $439.42 billion in May, down over 27% from $604.88 billion in April, according to data from The Block.
Last month's volume was the lowest level since October 2020 at $222.7 billion, the data showed.
Binance, the largest exchange, saw about $218 billion in monthly exchange volume during May, dropping about 26% from $293.83 billion in the previous month. Potentially as a result of the bear market and decreased demand, the exchange shared that it's reevaluating its workforce headcount ahead of future market cycles.
Over the past six years, the exchange grew from 30 employees to a team of almost 8,000 employees across the globe, a Binance spokesperson told TechCrunch.
"As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic," the Binance spokesperson added. "This is not a case of rightsizing, but rather, reevaluating whether we have the right talent and expertise in critical roles, and therefore we will still be seeking to fill hundreds of open roles."
The reevaluation will also include "looking at certain products and business units to ensure our resources are allocated properly to reflect the evolving demands of users and regulators."
This statement comes after a tweet on Wednesday by reporter Colin Wu that said multiple sources confirmed that Binance has started layoffs. While the actual number is "uncertain," the exchange may have laid off as many as 20% of its roughly 8,000 employees.
Patrick Hillmann, Binance chief communications officer, also disputed the claim in his own tweet thread and said the company is not cutting 20% of employees "as a cost-cutting measure."
The number of employees who were laid off could be "a much smaller figure," Hillmann said in another tweet. "We won't know until our teams conduct the talent density audit."
Even with the volatility of the current market and exchange volumes down substantially, Hillmann said the layoffs have "nothing to do with 'market conditions' today." The company is still looking to fill hundreds of roles, the spokesperson said.
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