The Security Token Trading Volume Crashed By 60%, September is Still the Second-Best Month On Record


October 14, 2020 11:52 am

Security Token Crash
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Following four months of spectacular growth, two dozen security tokens drove $9.15 million in trade and during September, security tokens trade volumes have crashed by nearly 60%.

According to Security Token Group’s reports, from May through August, monthly volume profits for the sector fluctuated between 113% and 280% posting record highs that grew from $998,000 to nearly $22 million.

Despite the massive fall in trade activity, September was still the second-strongest month on record for security tokens with more than $9.15 million in combined trade.

tZERO’s TZROP token, which is comprised more than half of the total trade with $5.3 million in volume, represents the equity in the alternative trading system, down from August’s $11.8 million. TZROP declined just 2% in price (from $7.26 to $7.10) over the month, though it traded within a range between $6 and $7.90. TZROP with a market cap of $128 million, is the second most popular security token, giving it the 80th-ranked crypto asset according to CoinMarketCap.

OSTKO is the largest security token with a $321 million capitalization, represents equity and voting rights in the company and it is at the 50th-ranked crypto asset overall. OSTKO closed the month fairly flat at 1.5% down, despite producing a wide trading range between $48 and $65.

Top 5 security tokens by market cap: STOMarket

In September, the combined market capitalization of security tokens surged by nearly 4% to $528.6 million, owing to the addition of three tokens trading on the Seychelles-based MERJ Exchange. The three tokens represent approximately $24 million in assets, yet none of the tokens traded during September.

MERJ’s tokens include its own native security token MERJ-S which was issued in a token sale that raised more than $450,000 last month; Uprets’ OST1 token representing fractionalized ownership in a Brooklyn apartment building; and Minervest’s MSTV-S token.

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