Total Trading Volume on Centralized Exchanges Declined by 21.8% in June

A report from CC Data revealed that the combined spot and derivatives trading volumes across centralized exchanges was $4.2 trillion a far cry

Total trading volume on centralized exchanges declined by 21.8% in June, marking a third consecutive month of declining trading activity since March.

A report from CC Data revealed that the combined spot and derivatives trading volumes across centralized exchanges was $4.2 trillion — a far cry from when it hit its peak in March with a total of $9 trillion in trading volume.

The report highlighted several reasons for this noticeable decline in trading volume, pointing at a sharp decline in open interest in derivatives exchanges.

In June, open interest on derivatives exchanges fell 9.67% to $47.11 billion. The trend persisted into July with top centralized exchange Coinbase witnessing a significant decline in open interest, dropping by 52.1% to $18.2 million.

The report attributed the drop in open interest to a decline in crypto prices, which was a result of massive selling pressure in the market. Notably, the activities of the German government, which sold approximately 50,000 BTC assets, and the proposed redistribution of over $9 billion worth of BTC assets to creditors by Mt. Gox occurred during this period.

On the futures market, the Chicago Mercantile Exchange (CME) — known as the world’s largest institutional derivatives exchange — also witnessed a decline in interest for futures contracts for major crypto assets like Bitcoin and Ethereum.

According to the report, Bitcoin futures trading volume declined by 11.5%, while Ethereum futures fell by 15.8%. In total, the futures trading volume fell by 11.5% to $103 billion in June following a strong performance in May.

In terms of market share among centralized exchanges, Binance lost a significant portion while Bybit and other fringe exchanges gained slightly.

Binance’s market share dropped from 40.4% in July 2023 to 31.2% in June 2024, marking a 9.16% decrease.

Bybit, on the other hand, increased its market share by 2.01% to 8%. Additionally, Singapore-based BitGet and HTX saw gains of 1.74% and 1.43%, respectively.

The report also highlighted that the drop in trading activity in June could be attributed to the high trading activity following the approval of 19B-4 forms for eight spot Ethereum ETF issuers that month. The news of the approval caused a surge in trading activity, which eventually cooled off in June.

Finally, the report noted that BTC options trading volume declined by 28.2% to $1.50 billion in June, while ETH options trading volume experienced the largest decline, dropping by 58.0% to $408 million.