August Data Shows Lowest Trading Volume for Spot and Derivatives on Centralized Exchanges

August Data Shows Lowest Trading Volume for Spot and Derivatives on Centralized Exchanges

Grayscale’s SEC Victory Doesn’t Boost Cryptocurrency Accumulation

Regardless of Grayscale’s recent victory over the SEC, which was seen as a blow to the financial regulator’s crackdown on the cryptocurrency industry, there has been no whole lot of increase in the accumulation of cryptocurrency assets in the spot market. According to CCData’s latest report, August continued the trend of declining cryptocurrency accumulation.

Spot Volume Declines

In August, the total volume of trading for spot and derivatives on centralized exchanges decreased by 11.5% to $2.09 trillion, the lowest monthly volume in the year. This decline can be attributed to price fluctuations and the impact of the FTX collapse. Spot volume of trading on centralized exchanges likewise dropped by 7.78% to $475 billion, the lowest monthly volume since March 2019.

Daily trading volumes on centralized exchanges hit a low of $5.90 billion, the lowest since February 2019. This decline in trading volumes is similar to the sluggish trading activity observed during the 2019 bear market.

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Binance’s Market Share Declines, Huobi Sees Growth

Binance remains the largest spot trading platform, but its market share has declined for the Sixth consecutive 30 days, reaching its weakest point since August 2022. On the other hand, Huobi experienced a 46.5% increase in trading volumes, becoming the second- largest exchange after Binance.

Derivatives Volume Decreases

Derivative trading volumes likewise saw a decrease of 12.5% in August, reaching the weakest point since December 2022. The decline in derivatives market share can be attributed to volatility of the market and a whole lot of decline in open interest.

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Binance remained the largest derivatives exchange, followed by OKX and Bybit.

Hot Take: Cryptocurrency Accumulation Remains Low Regardless of Grayscale’s SEC Victory

Regardless of Grayscale’s recent win against the SEC, the accumulation of cryptocurrency assets in the spot market has not seen a whole lot of increase. This, combined with the decline in spot and derivatives trading volumes, suggests a period of low activity in the cryptocurrency market. Binance’s market share continues  to decline, while Huobi defies the trend with whole lot of growth. The decrease in derivatives market share is driven by volatility of the market and declining open interest. Overall, these trends indicate a cautious and uncertain market environment for cryptocurrency traders and investors.

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