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 Crypto Accumulation

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

Spot Volume Declines

In August, the total trading volume for spot and derivatives on centralized exchanges decreased by 11.5% to $2.09 trillion, the lowest monthly volume this year. This decline can be attributed to price fluctuations and the impact of the FTX collapse. Spot trading volume on centralized exchanges also 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 month, reaching its lowest level 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 also saw a decrease of 12.5% in August, reaching the lowest level since December 2022. The decline in derivatives market share can be attributed to market volatility and a significant decline in open interest.

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

Hot Take: Crypto Accumulation Remains Low Despite Grayscale’s SEC Victory

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

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