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19/07/24
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Trading Volume on CEXs Declined Significantly Last Month
On July 17, CCData’s monthly exchange review revealed a 21.8 percent decline in trading volume on centralized crypto exchanges (CEXs) last month, representing the third straight month of aggregate spot and derivatives volumes trending downward since March.
According to the report, the aggregate spot and derivatives volume across all CEXs was $4.2T last month, representing a 53 percent decline from the record $9T in volume attained about months ago.
There was a 9.7 percent fall in Open Interest across cryptocurrency derivatives exchanges, after several liquidations were prompted by a steep fall in the price of crypto assets last month. The fall was reportedly aggravated by “fears of selling pressure” from Mt. Gox and the government of Germany’s sales of BTC valued at billions of USD.
Another point from the report is a shift in the landscape of centralized exchange providers between H2 2023 and H1 2024. Bybit recorded the largest increase in market share from 4 percent to 8 percent, followed by Bitget whose market share increased to 3.5 percent.
Binance’s market share declined significantly from 40.4 percent in July 2023 to just 31.2 percent a year later. The Chicago Mercantile Exchange’s (CME) total futures trading volume declined significantly by 11.5 percent to $103bn last month.
The remarkable decline in the total futures trading volume of the world’s largest institutional derivatives exchange was majorly due to futures contract volume for BTC and ETH falling by 11.5 percent and 15.8 percent respectively. ETH options total trading volume saw the biggest decline on CME despite market participants expecting the launch of spot ETH ETFs on July 23.
There was a 58 percent decline in the trading volume of ETH options to $408 million, with CCData noting that this decline was majorly due to the frenzy for options positions encouraged by the U.S. SEC’s approval of spot Ether ETFs two months ago.
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