In June, trading on centralized crypto exchanges went down by 21.8%, continuing a trend we’ve seen since March. This is the third month in a row with less trading activity.
A report from CC Data showed that the total trading volume, including spot and derivatives, was $4.2 trillion in June. This is much less compared to March when it reached $9 trillion.
The report also mentioned why there’s less trading now. They said it’s because people are less interested in trading derivatives. Derivatives are financial products that get their value from another asset like Bitcoin or Ethereum.
For example, in June, the value of open contracts on derivatives exchanges dropped by 9.67% to $47.11 billion. This trend lasted into July, and big exchanges like Coinbase saw a huge drop in open contracts, down by 52.1% to $18.2 million.
One reason for this drop is the falling crypto prices. When prices go down quickly, many people sell off their assets, leading to less trading.
Also, the German government sold about 50,000 Bitcoin, and the plan to redistribute over $9 billion worth of Bitcoin by Mt. Gox happened around this time. This affected the trading numbers too.
The Chicago Mercantile Exchange (CME), the world’s biggest place for trading derivatives, also saw less activity. For example, Bitcoin futures trading volume dropped by 11.5%, and Ethereum futures trading volume fell by 15.8%. Overall, futures trading volume went down by 11.5% to $103 billion in June, compared to a strong May.
When it comes to market share, big exchanges saw some changes. Binance’s share dropped from 40.4% in July 2023 to 31.2% in June 2024, a decrease of 9.16%. Meanwhile, exchanges like Bybit gained market share, increasing by 2.01% to 8%. Others, like Singapore-based BitGet and HTX, also saw small gains.
In June, the high trading activity was partly due to a surge in trading after the approval of 19B-4 forms for eight spot Ethereum ETF issuers. But this excitement has cooled off now.
Lastly, the report said that BTC options trading volume dropped by 28.2% to $1.50 billion in June. ETH options trading volume had an even bigger drop, falling by 58.0% to $408 million.
What to Know
- Derivatives trading is when you buy or sell a contract that gets its value from something else, like how you can trade on gold prices without owning any gold.
- Cryptocurrency futures trading is betting on the future price of a cryptocurrency. You don’t need to own the coin; you just bet whether the price will go up or down.