Markets
Cryptocurrency trading volume declined for third consecutive month in June: CCData
Trading volume on centralized exchanges fell 21.8% in June, marking the third consecutive month of declining activity since March.
According to a report from CCData released on July 17, the combined volume of spot and derivatives trading on these platforms stood at $4.2 trillion, down from a peak of $9 trillion in March.
Open Interest and CME Drawdowns
The report Underlines Several key factors contributed to this decline. One of the main factors was a notable decrease in open interest in derivatives markets.
In June, open interest on derivatives exchanges fell 9.67% to $47.11 billion. This trend continued in July, with Coinbase seeing a significant decline in its open interest, dropping 52.1% to $18.2 million.
The decline was attributed to a series of sell-offs triggered by a plunge in cryptocurrency prices throughout June and into July. Analysts identified selling pressure from a variety of sources, including the aftermath of Mt. Gox refunds and Bitcoin sales by the German government.
The Chicago Mercantile Exchange (CME) futures market, known as the world’s largest institutional derivatives exchange, also saw a notable decline.
After a strong performance in May, trading volume fell 11.5% to $103 billion in June, reflecting a decline in interest in futures contracts for major cryptocurrencies such as Bitcoin and Ethereum. Bitcoin futures trading volume fell 11.5%, while Ethereum futures fell 15.8%.
Bybit Advances While Binance Declines
THE approval Ethereum spot ETFs in May caused a frenzy in trading activity, which eventually subsided in June. Over the past six months, Dubai-based exchange Bybit has increased its market share from 2.01% to 8%. Similarly, Singapore-based BitGet and HTX have seen gains of 1.74% and 1.43%, respectively.
In contrast, Binance saw its market share decline from 40.4% in July 2023 to 31.2% in June 2024, a decrease of 9.16%. At the same time, the average funding rates of the four exchanges analyzed have stabilized somewhat, rebounding from the negative rates observed the previous month.
BTC options trading volume also declined by 28.2% to $1.50 billion, while ETH options trading volume saw the biggest decline, falling by 58.0% to $408 million.
The decline was primarily attributed to increased activity in options trading, driven by the SEC’s approval of spot Ether ETFs in May, and coincides with the anticipated launch of eight spot Ether ETFs scheduled for July 23.