Crypto Trading Volume Experienced Third Straight Monthly Decline in June, Reports CCData
2 min read![Crypto Trading Volume Experienced Third Straight Monthly Decline In June, Reports Ccdata 1 Crypto Trading Volume Declined For Third Consecutive Month In June: Ccdata](https://cryptoinfonet.com/wp-content/uploads/2024/07/Crypto-Trading-Volume-Experienced-Third-Straight-Monthly-Decline-in-June-1024x614.jpg)
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. relegated to the status of history.
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