Crypto exchange volume in August surged 30% MoM

Despite the decline in cryptocurrency prices over the past month, activity on centralized exchanges has increased.

Data from centralized crypto exchanges showed Bitcoin (BTC) and other digital assets were up 30% month-over-month in August, even as they experienced a historic downtrend. August and September are typically bearish months for crypto, but as the data confirms, lower prices don’t necessarily mean less trading activity.

Binance and Bybit led the major centralized exchange (CEX) pack, up 35% and 41% respectively. However, KuCoin, Crypto.com, and MEXC outpaced the larger platforms. Crypto spot trading volumes on these three platforms increased by 171%, 79%, and 44% respectively, as investors mixed assets and blockchain-based value.

Meanwhile, Gate saw a 44% drop in activity, while Justin Sun-backed HTX and South Korean giant Upbit experienced the smallest increases in trading volume.

CEX exchange volume increased by 30% in August | Source: WuBlockchain Why CEX volume increased when price fell

Some of the CEX activity in August included billions of dollars worth of Bitcoin outflows from platforms like Binance and Coinbase, crypto.news reported. The withdrawal of investors from crypto exchanges could be seen as a bullish sign.

The surge in CEX spot trading volume likely signals optimism among digital asset investors, with U.S. Federal Reserve officials poised to cut interest rates before the end of this month, barring any major changes or hawkish economic data.

Lower interest rates, along with increased risk appetite, could encourage investors to take on more debt and allocate capital to assets.

CoinBureau CEO Nic Puckrin told crypto.news via email that increased liquidity could lead to a price increase for Bitcoin and other cryptocurrencies. Puckrin added that Bitcoin will likely lead the way, while altcoins like Ethereum (ETH) continue to underperform compared to BTC. Bitcoin whales have been on an accumulation spree ahead of the expected Fed rate cuts.

I would say that the current market is soft in September. I expect Bitcoin to continue to trade in a range-bound manner over the next few weeks. Altcoins are likely to fall relative to Bitcoin, thus leading to an increase in Bitcoin dominance.