I think some of the traditional indicators used in market analysis fail to account for PoS lockup periods. When the market turned in May, a lot of people stashed their bags in staking, which with many coins locks the club away and prevents trading (Solana is 3 days, Polkadot is 28, Polygon is about 2, Ethereum is 5+ months). Now the market lacks volume, and price moves seem amplified.
For example, we’re seeing about $60B in day of volume with a $1.3T to $1.5T market cap. Last fall we were seeing $70B to $150B a day in trading volume with a $400B market cap. Less than 5% of the market is turning over daily, compared to nearly 15-35% previously.
Is PoS the reason we see low volumes, or is that just a feature of bear market fear?