Spot Trading Volume on Binance Drops to Lowest Level Since October 2020
The spot trading volume on leading cryptocurrency exchange Binance has experienced a significant decline, dropping by 36.8% to $115 billion last month. This marks the lowest level since October 2020 and is the third consecutive drop since June.
Binance’s Market Share Decreases
Binance’s share of the spot cryptocurrency trading market has also decreased to its lowest level since June 2022, standing at 34.3%. The decline in volume was exacerbated by the end of the zero-fee trading offer for BTC-TUSD pairs last month.
Derivatives Trading Volume on Binance Hits Lowest Level Since December 2020
In addition to spot trading, Binance’s derivatives trading volume has also seen a decline. In September, it dropped by 20.8% to $686 billion, marking the lowest level since December 2020. Despite this decrease, Binance remains the leader in the derivatives market with a 51.5% share.
Centralized Exchanges Experience Drop in Derivatives Volume
The Exchange Review report from CCData reveals that centralized exchanges as a whole have seen a decline in derivatives volume. Last month, it dropped by 17.7% to $1.33 trillion, reaching its lowest level since December 2020. This trend is attributed to declining spot trading volumes compared to derivatives volumes.
Overall Volumes on Centralized Exchanges Decline
CCData’s Exchange Review highlights that combined post and derivatives volumes on centralized exchanges declined by 20.3% to $1.67 trillion last month. This is the third consecutive monthly drop and is attributed to low volatility and seasonal patterns typically seen in the third quarter.
Jamie Dimon Warns of Turbulence in Global Financial Markets
Last month, Jamie Dimon, CEO of JPMorgan Chase & Co, expressed concerns about global financial markets. He warned that if the Federal Reserve raises its benchmark interest rate to 7% in the face of stagflation, unprecedented turbulence could be experienced. Dimon emphasized that the impact of transitioning from 5% to 7% would be more significant compared to the shift from 3% to 5%.
Hot Take: Spot Trading Volume on Binance Reaches Lowest Level Since October 2020
Binance, one of the leading cryptocurrency exchanges, has witnessed a decline in spot trading volume, reaching its lowest level since October 2020. This drop is part of a downward trend that has persisted since June. Additionally, Binance’s market share in the spot cryptocurrency trading market has decreased to its lowest point since June 2022. The decline in volume can be attributed to the termination of the zero-fee trading offer for BTC-TUSD pairs. On the derivatives front, Binance also experienced a decrease in trading volume, marking the lowest level since December 2020. Despite these declines, Binance remains dominant in both spot and derivatives markets. However, centralized exchanges as a whole have seen a drop in derivatives volume. Overall volumes on centralized exchanges have also declined for three consecutive months due to low volatility and seasonal patterns. These developments raise concerns about potential turbulence in global financial markets.
By
By
By
By
By
By