The trading volume on centralized exchanges has seen a significant decline of 21.8% in June, continuing a trend that started in March. The report by CCData highlights various factors contributing to this decline. One major factor is the decrease in open interest in derivatives exchanges, which fell by 9.67% to $47.11 billion in June. This trend has continued into July, with Coinbase experiencing a substantial drop in open interest by 52.1% to $18.2 million.
Over the past six months, there have been noticeable shifts in market share among exchanges. Dubai-based exchange Bybit has seen an increase in its market share by 2.01% to 8%. Similarly, Singapore-based exchanges BitGet and HTX have also seen gains of 1.74% and 1.43%, respectively. On the contrary, Binance has experienced a decline in market share from 40.4% in July 2023 to 31.2% in June 2024, marking a decrease of 9.16%.
The decline in trading volume can be attributed to various external factors affecting the cryptocurrency market. Selling pressures from sources such as Mt. Gox repayments and Bitcoin sales by the German government have contributed to the decline in trading activity. The approval of spot Ethereum ETFs in May led to a surge in trading activity, which eventually decreased in June.
The futures market on the Chicago Mercantile Exchange (CME), the world’s largest institutional derivatives exchange, saw a notable decline in trading volume. Following a strong performance in May, trading volume fell by 11.5% to $103 billion in June. This reflects decreased interest in futures contracts for major cryptocurrencies like Bitcoin and Ethereum.
BTC options trading volume declined by 28.2% to $1.50 billion, while ETH options trading volume plummeted by 58.0% to $408 million. This decline in options trading volume can be attributed to increased activity in options trading, driven by the SEC’s approval of spot Ether ETFs in May.
The decline in trading volume on centralized exchanges can be attributed to a combination of factors such as the decrease in open interest, external selling pressures, and shifts in market share among exchanges. It will be interesting to see how these trends continue to evolve in the coming months and what impact they will have on the overall cryptocurrency market.
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