Crypto trading volume declined for third month in a row in June – CCData

Trading volume on centralized exchanges decreased by 21.8% in June, marking the third consecutive month of decreased activity since March.

According to a CCData report published on July 17, the combined volume of spot and derivatives trading on these platforms totaled $4.2 trillion, down from a peak of $9 trillion recorded in March.

Open Interest and CME Declinations

The report highlighted several key factors contributing to this decline. A major factor was a marked decline in open interest in derivatives exchanges.

In June, OI on derivatives exchanges fell 9.67% to $47.11 billion. This trend continued in July, and Coinbase saw a significant decrease in open interest, which fell 52.1% to $18.2 million.

The drop was attributed to a series of liquidations caused by a fall in cryptocurrency prices throughout June and July. Analysts identified selling pressures from several sources, including the fallout from repayments by Mt. Gox and the German government’s sales of Bitcoin.

The futures market on the Chicago Mercantile Exchange (CME), known as the world’s largest institutional derivatives exchange, also saw a notable decline.

After a strong performance in May, trading volume fell 11.5% to $103 billion in June, reflecting reduced interest in futures contracts for major cryptocurrencies such as Bitcoin and Ethereum. Bitcoin futures trading volume declined 11.5%, while Ethereum futures fell 15.8%.

Bybit gains as Binance declines

The approval of spot Ethereum ETFs in May caused a frenzy of trading activity, which eventually subsided in June. Over the past six months, Dubai-based exchange Bybit increased its market share by 2.01% to 8%. Similarly, Singapore-based BitGet and HTX posted gains of 1.74% and 1.43%, respectively.

On the other hand, Binance saw its market share decrease from 40.4% in July 2023 to 31.2% in June 2024, marking a decrease of 9.16%. Meanwhile, the average funding rates of the four exchanges analyzed stabilized somewhat, recovering from the negative rates seen the previous month.

Trading volume for BTC options also declined by 28.2% to $1.5 billion, while trading volume for ETH options saw the largest drop, falling 58.0% to 408 million dollars.

This decline was primarily attributed to increased activity in options trading, driven by the SEC’s approval of spot Ether ETFs in May, and coincides with the planned launch of eight planned spot Ether ETFs on July 23.

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