xStocks volume has plummeted 93% from its peak! Can stock tokenization truly enable 24/7 trading?

After July 4th, xStocks volume experienced a big dump of 93%, indicating a dependence on the holiday arrangements of TradFi. Although it can be accessed 24 hours a day, stock tokenization may still be closely related to the pace of Wall Street.

As Wall Street takes a breather (the US stock market was closed last Friday), the blockchain is also catching its breath. The trading activity of xStocks (the tokenized version of real-world stocks) has sharply declined, with daily volume dropping by over 93%.

The number of wallets appearing is decreasing, and the number of transactions is also decreasing. The enthusiasm surrounding decentralized stock trading has suddenly quieted down.

xStocks fell from a high of $8.5 million to a holiday low, what exactly went wrong?

On July 2, xStocks volume reached a new high: daily trading volume exceeded $8.5 million, with over 6,600 active traders.

But by July 5th, these numbers had already experienced a big dump; the volume dropped to only $563,000, and the number of wallet participants decreased to 1,700.

(Source: Dune Analytics)

SPYx and METAx once led the rise, but with the arrival of the holidays, even the momentum of these two stocks is gradually fading. Although these tokenized stocks can be traded around the clock, they also seem to be in sync with the rhythm of the traditional market.

The sharp decline indicates behavioral dependence, showing that mere decentralization is still insufficient to rewrite market habits... at least for now.

Top Stocks Leading and Lagging in the Uptrend

Data shows that the frenzy for xStocks is not evenly distributed.

METAx and SPYx dominated the trading in early July, followed closely by TSLAx, HOODx, and NVDAx. However, even these best-performing stocks could not escape the fall after the holiday.

(Source: Dune Analytics)

The daily number of trading accounts plummeted from over 8,500 on July 1 to below 2,000 on the 5th.

(Source: Dune Analytics)

Tokens like ORCLx, GLDx, and CRWDx, although abundantly supplied, are hardly being purchased. The disconnection between supply and demand reveals a deeper challenge: liquidity does not equal interest.

Naturally, there seems to be no hints from TradFi, and most wallets choose to sit on the sidelines.

Is stock tokenization still limited to the "9 to 5"?

The calmness of July 4th may seem like a one-off event, but it may have deeper underlying reasons.

Analysis indicates that although xStocks is designed for an all-weather market, its trading hours still align with TradFi trading hours. It remains unclear whether this is a pause due to holidays or a manifestation of structural dependency.

It is certain that in order for tokenized stocks to break free from the TradFi rhythm, it requires faith, consistency, and a user base that trades according to their own conditions.