The volume
of cryptocurrency spot trading on centralized exchanges (CEXs) plunged by 21.8%
in May to $495 billion, marking the lowest monthly trading volume since March 2019. Also, derivatives trading volumes slumped by 15.7% to
$1.95 trillion, which is the lowest since December 2022.
These
figures are according to new data by digital asset data provider, CCData,
previously known as CryptoCompare. CCData is also a benchmark administrator authorized
by the UK Financial Conduct Authority.
According
to the firm, despite the decrease in derivatives trading volumes on CEXs, the
market share of the segment reached an all-time-high last month, expanding to
79.8%. However, the volume of spot and derivatives trading combined slid
by 15.7% to $2.41 trillion.
CCData
explained that the volume represents the second consecutive drop in monthly
volume of the combined activities. The decrease came as the prices of digital
assets fluctuated within a relatively narrow range during the period.
“The
popularity of meme coins traded on decentralized venues has also contributed to
the declining trading activity on centralized exchanges,” CCData added.
Binance Shrinks, CME Grows
Giving more
details on the cryptocurrency trading market, CCData noted that spot trading on
Binance, the world’s largest cryptocurrency exchange by trading volume,
nosedived by 26% to $221 billion in May. In addition, Binance’s spot market
share shrank for the third consecutive month, slipping to 43%.
The data
analytics firm attributed Binance’s continued weakness to the halting of zero-free
trading for stablecoin USDT pairs, general weakness in the market and increased
scrutiny from regulators.
Finance Magnates reported that cryptocurrency exchanges
in the United States continue to face regulatory crackdown, with Binance and Coinbase sued this week by federal securities regulator for allegedly
operating illegal exchanges and offering unregistered crypto asset securities.
Meanwhile, CCData’s data shows that Chicago Mercantile Exchange (CME) remained
resilient in the face of plummeting volumes in the crypto derivatives industry.
The top derivatives exchange posted a marginal growth of 0.53% in its
derivatives volume, with total trades worth $39.1 billion.
“CME’s
resilience can be attributed to continued institutional interest in Bitcoin, as
demonstrated by a 10.5% surge in BTC futures volume to $29.5bn,” CCData noted.
Moreover,
CCData also shows that Uniswap, the biggest decentralized crypto exchange in the world,
continued to outperform all CEXs, with the exception of Binance, for the fourth
consecutive month. This is despite the fact that the exchange’s volume fell by
11.6% to $33 billion last month.
Uniswap
functions as a non-custodial exchange that enables users to trade Ethereum
blockchain-based ERC-20 tokens directly with each other without the need for a
third party.
UK bank taps Integral; StoneX’s prime brokerage; read today’s news nuggets.
The volume
of cryptocurrency spot trading on centralized exchanges (CEXs) plunged by 21.8%
in May to $495 billion, marking the lowest monthly trading volume since March 2019. Also, derivatives trading volumes slumped by 15.7% to
$1.95 trillion, which is the lowest since December 2022.
These
figures are according to new data by digital asset data provider, CCData,
previously known as CryptoCompare. CCData is also a benchmark administrator authorized
by the UK Financial Conduct Authority.
According
to the firm, despite the decrease in derivatives trading volumes on CEXs, the
market share of the segment reached an all-time-high last month, expanding to
79.8%. However, the volume of spot and derivatives trading combined slid
by 15.7% to $2.41 trillion.
CCData
explained that the volume represents the second consecutive drop in monthly
volume of the combined activities. The decrease came as the prices of digital
assets fluctuated within a relatively narrow range during the period.
“The
popularity of meme coins traded on decentralized venues has also contributed to
the declining trading activity on centralized exchanges,” CCData added.
Binance Shrinks, CME Grows
Giving more
details on the cryptocurrency trading market, CCData noted that spot trading on
Binance, the world’s largest cryptocurrency exchange by trading volume,
nosedived by 26% to $221 billion in May. In addition, Binance’s spot market
share shrank for the third consecutive month, slipping to 43%.
The data
analytics firm attributed Binance’s continued weakness to the halting of zero-free
trading for stablecoin USDT pairs, general weakness in the market and increased
scrutiny from regulators.
Finance Magnates reported that cryptocurrency exchanges
in the United States continue to face regulatory crackdown, with Binance and Coinbase sued this week by federal securities regulator for allegedly
operating illegal exchanges and offering unregistered crypto asset securities.
Meanwhile, CCData’s data shows that Chicago Mercantile Exchange (CME) remained
resilient in the face of plummeting volumes in the crypto derivatives industry.
The top derivatives exchange posted a marginal growth of 0.53% in its
derivatives volume, with total trades worth $39.1 billion.
“CME’s
resilience can be attributed to continued institutional interest in Bitcoin, as
demonstrated by a 10.5% surge in BTC futures volume to $29.5bn,” CCData noted.
Moreover,
CCData also shows that Uniswap, the biggest decentralized crypto exchange in the world,
continued to outperform all CEXs, with the exception of Binance, for the fourth
consecutive month. This is despite the fact that the exchange’s volume fell by
11.6% to $33 billion last month.
Uniswap
functions as a non-custodial exchange that enables users to trade Ethereum
blockchain-based ERC-20 tokens directly with each other without the need for a
third party.
UK bank taps Integral; StoneX’s prime brokerage; read today’s news nuggets.
