Decrease in cryptocurrency trading volume
Trading volume on centralized trading platforms fell by 21.8% in June, marking the third straight month of declining trading activity since March, according to a CCData report released on July 17.
Combined spot and derivatives trading volume across these platforms reached $4.2 trillion, compared to a peak of $9 trillion in March.
Factors affecting the decline:
The report cited several key factors contributing to this decline, including a notable decline in open interest in derivatives exchanges.
In June, direct investment in derivatives exchanges fell by 9.67% to $47.11 billion.
This trend continued into July, where Coinbase saw its open interest drop by 52.1% to $18.2 million.
This decline is attributed to a series of liquidations caused by falling cryptocurrency prices during June and into July.
Analysts pointed to selling pressure resulting from the Mt Gox payment and Bitcoin sales by the German government.
The futures market on the Chicago Mercantile Exchange (CME) saw a notable decline after a strong performance in May, with trading volume falling by 11.5% to $103 billion in June.
This decline reflects a decline in interest in futures contracts for major cryptocurrencies such as Bitcoin and Ethereum, as trading volume for Bitcoin futures fell by 11.5%, while Ethereum futures fell by 15.8%.
In conjunction with all of the above, the approval of Ethereum spot ETFs in May caused a spike in trading activity, which had declined in June.
Over the past six months, Dubai-based trading platform Bybit has increased its market share by 2.01% to 8%. Likewise, Singapore-based BitGet and HTX saw gains of 1.74% and 1.43%, respectively.
In contrast, Binance's market share decreased from 40.4% in July 2023 to 31.2% in June 2024, representing a decline of 9.16%.
Bitcoin options trading volume also fell by 28.2% to $1.50 billion, while Ethereum options saw a larger decline of 58.0% to $408 million.
