Why Is The Crypto Exchange Trading Volume Declining For Months?

The crypto market is turning towards bulls, but it is way behind compared to March’s market performance. Between these months, the market was more irregular, with frequent falls and neutral sentiments among investors, indicating a slow days. Moreover, recent reports reveal that crypto exchange trading volume has been struggling for months, challenging the investor’s confidence in the market.

Crypto Exchange Trading Volume Declines 20% In June

The fall in the crypto exchange’s trading volume began in April and continues even to this day. The CCData report reveals a drop of nearly 33% in the spot trading volume on the crypto exchange in April alone. Along with that, the crypto derivatives trading volume also has 26% at the same time, making it the first fall in seven months.

This fall came after the continuous bullish performance of the market since the beginning of the year. However, the market slowed down after March. At that time, the spot and derivative trading bagged $9.05 Trillion, the highest in months. But that has changed after that.

Not only changed but it worsened month by month as June witnessed a heavy drop of more than 20% in the crypto exchange trading volume. The spot and derivatives trading volume has collectively dropped by 21.8%, reducing half of March data to $4.22 Trillion.

The spot trading volume alone declined by 19.3%, declining to as low as $1.3 Trillion in June, which was around $3 Trillion in March. The impact of that was also on Open Interest, as it dropped 9.76% on the derived exchange, bringing it down to $47.11 Billion.

Additionally, the Chicago Mercantile Exchange (CME), which is the biggest institutional derivative exchange, has a notable decline of 11.5% in futures trading volume. It dropped to a low of $ 103 billion, with the hardest hit in the ETH options.

Binance Market Share Dropped By 9%

With a drop in the crypto exchange trading volume, the biggest centralized exchange, Binance, has a 9% drop in the market share. However, this drop occurred over a year, as its share was 40.4% in July 2023, but now it has dropped to 31.2%.

Also Read: Is the Crypto Market Surge Indicating The Bull Run Beginning?

On the other hand, crypto exchanges like Bybit and BitGet have a surge in their shares. Bybit exchanges share has increased to 8% after a 4% growth, and the BitGet share increased to 3.5% after a 3.7% growth.

High Selling Pressure Is To Blame

The crypto market has been witnessing a significant surge in selling pressure, which is why the crypto exchange had a big drop in the trading volume. Last month, the liquidation was high due to the decline in the Bitcoin price, followed by a decline in altcoin value. Not to forget, there has been high selling pressure with the Mt. Gox plans for Bitcoin transactions, which were scheduled for July.

The CCData report says,

This decline was exacerbated by fears of selling pressure from Mt. Gox, with the defunct exchange announcing repayment for its users in July. Additionally, the German government contributed to the pressure by selling a major portion of its BTC positions.

Final Thought

After a rough three months, the crypto exchange trading volume has dropped from $9 trillion to $4.22 Trillion, making a 53% drop in just three months. The data indicates a slow beginning for the month, and with the initial crypto market crash, things have complicated even more. However, as the user’s sentiments are moving towards greed, this month might bag a significant surge, but it is uncertain for now.

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