Crypto Trading Volumes Decline Across Centralized Exchanges in June

The recent report from CCData highlights a significant downturn in crypto trading volumes on centralized exchanges, which has continued since March 2024. 

June’s figures reveal a substantial 21.8% drop in combined spot and derivatives trading volumes to $4.22 trillion, with leading cryptocurrencies like Bitcoin and Ethereum showing little movement.

Source: CCData

The steady decrease in trading activity

Since reaching a peak in March with $9.05 trillion in digital asset volumes, centralized exchanges have witnessed a consistent fall. This trend intensified in June, marking the third month of reduced trading activity. 

The decrease in trading volumes has been accompanied by a downturn in open interest on derivatives exchanges, which decreased by 9.67% to $47.11 billion. Notably, Coinbase experienced a dramatic 52.1% fall in its open interest, plummeting to $18.2 million.

Performance across major exchanges

While Binance retains its status as the largest centralized exchange, it, too, saw a 9.93% reduction in open interest, down to $19.4 billion. The Chicago Mercantile Exchange (CME) also reported a decline in institutional volumes, with June’s futures trading volume dropping by 11.5% to $103 billion. Moreover, the trading volume for BTC options fell by 28.2% to $1.50 billion, and ETH options trading saw an even sharper decline of 58.0%, totaling $408 million.

Source: CCData

The landscape of exchange market share is shifting. While Binance’s market share diminished from 40.4% in July 2023 to 31.2% in June 2024, Bybit, Bitget, and HTX increased. From the latter half of 2023 to the first half of 2024, Bybit, Bitget, and Gate.io showed the most significant gains in market share, rising by 4.07%, 3.47%, and 2.71%, respectively.

Source: CCData

Market dynamics and outlook

Despite the overall negative trend, average funding rates across the four analyzed exchanges slightly recovered from the previous month’s negative rates. Negative funding rates generally indicate bearish market sentiments as short position holders compensate for long positions. However, with Bitcoin’s price recovery above $60,000, market sentiment has shown signs of a bullish revival.

The recent approval of spot Ethereum ETFs in May initially spurred a surge in trading volumes, but the excitement has tempered in June, contributing to the broader slowdown. As the market adjusts, the trading dynamics on centralized exchanges will likely evolve, influenced by regulatory developments and shifts in trader behavior.

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