In June, the trading volume on centralized exchanges experienced a significant decline of 21.8%, continuing a downward trend that started in March. This information was revealed in a recent report by CCData released on July 17, which stated that the combined spot and derivatives trading volume on these platforms dropped to $4.2 trillion from a peak of $9 trillion in March.
One of the key factors contributing to this decline was a notable decrease in open interest on derivatives exchanges. In June, the open interest on derivatives exchanges fell by 9.67% to $47.11 billion. This trend continued into July, with Coinbase experiencing a significant drop of 52.1% in open interest, down to $18.2 million.
The decline in open interest was attributed to a series of liquidations triggered by a drop in cryptocurrency prices throughout June and July. Analysts pointed to selling pressures from various sources, including Mt. Gox repayments and Bitcoin sales by the German government.
Furthermore, the futures market on the Chicago Mercantile Exchange (CME) also saw a notable decline in trading volume. Following a strong performance in May, trading volume fell by 11.5% to $103 billion in June, reflecting decreased interest in futures contracts for major cryptocurrencies like Bitcoin and Ethereum. Bitcoin futures trading volume declined by 11.5%, while Ethereum futures fell by 15.8%.
On the other hand, there were some exchanges that saw gains during this period. For example, Dubai-based exchange Bybit increased its market share by 2.01% to reach 8%. Similarly, Singapore-based BitGet and HTX saw gains of 1.74% and 1.43%, respectively. However, Binance saw its market share decline from 40.4% in July 2023 to 31.2% in June 2024, marking a decrease of 9.16%.
Average funding rates across the four analyzed exchanges stabilized somewhat, rebounding from the negative rates observed in the previous month. BTC options trading volume declined by 28.2% to $1.50 billion, while ETH options trading volume experienced the largest decline, plummeting by 58.0% to $408 million.
This decline in options trading volume was attributed to increased activity in options trading, driven by the SEC’s approval of spot Ether ETFs in May. Additionally, the expected launch of eight spot Ether ETFs on July 23 may have also impacted trading activity in the options market.
Overall, the cryptocurrency trading landscape experienced a decline in trading volume in June, with various factors contributing to this trend. It will be interesting to see how these developments continue to shape the market in the coming months.