Bitcoin and Ethereum on-chain activity has decreased for the fourth week in a row, while DEX trading volume increased from 14% to 22% in May due to regulatory crackdown on centralized exchanges. However, DEX volume has fallen back again, and the entire crypto space is experiencing thin liquidity.

The regulatory crackdown in the US may push crypto offshore or into the decentralized realm, but it is uncertain whether this will increase on-chain activity. The decline in fees and activity across the crypto space is due to falling prices and an increasingly punitive regulatory regime, which has suppressed enthusiasm for the industry and limited demand from institutions.