Crypto Trading Volume Experienced Third Straight Monthly Decline in June, Reports CCData

The trade volume on centralized exchanges saw a 21.8% drop in June, continuing the downward trend of activity for the third month since March.

As per a July 17 CCData report, the aggregate volume of spot and derivatives trades on these exchanges hit $4.2 trillion, a significant reduction from March’s $9 trillion zenith.

Dips in Open Interest and CME Activity

A significant diminishment in open interest on derivatives exchanges was among the primary factors influencing this downturn, as detailed in the report.

The open interest on such platforms shrank by 9.67% to $47.11 billion in June. This descending pattern extended into July, exemplified by Coinbase, where open interest plummeted by 52.1% to $18.2 million.

These reductions have been linked to a spate of liquidations that followed a general slump in cryptocurrency values across June and July. Market analysts have pinpointed sell-off pressures from diversified echelons, including the repercussions of Mt. Gox’s payouts and Bitcoin disposals by the German authorities.

Moreover, the leading institutional derivatives exchange, CME, endured a downturn. Post a robust performance in May, its trading volume decreased by 11.5% to $103 billion in June. This reflected dwindling appetite for futures contracts of mainstream cryptocurrencies like Bitcoin and Ethereum, with trading volumes for Bitcoin futures dropping by 11.5% and Ethereum futures by 15.8%.

Bybit’s Rise Versus Binance’s Fall

Reaction to the sanction of spot Ethereum ETFs in May led to a temporary surge in trading, which subsided in June. Over half a year, Dubai’s Bybit has upped its market presence by 2.01% to 8%, while exchanges like BitGet in Singapore and HTX also observed upticks of 1.74% and 1.43% respectively.

In opposition, Binance’s market share slipped from 40.4% in July 2023 to 31.2% in June 2024, a fall of 9.16%. Conversely, average funding rates on the surveyed exchanges reached a semblance of stability, recovering from the previous month’s negative figures.

Additionally, BTC options saw a 28.2% decline in trade volume to $1.50 billion, with ETH options enduring the steepest fall of 58.0% to $408 million.

This drop-off is largely due to a spike in options trading activity, propelled by the SEC’s clearance of spot Ether ETFs in May, coinciding with the forthcoming introduction of eight anticipated spot Ether ETFs on July 23.