Centralized Exchanges Recorded Lowest Spot and Derivatives Trading Volume in August: Data

Grayscale’s victory over the SEC could be seen as a major setback for the financial regulator, which has intensified its enforcement efforts against the cryptocurrency industry. However, this landmark win did not translate into a notable increase in the accumulation of crypto assets in the spot market.

In fact, CCData’s latest report disclosed that the losing streak continued in August despite minor fluctuations.

Spot Volumes Takes Hit

The total trading volume for spot and derivatives on centralized exchanges experienced an 11.5% decline, reaching $2.09 trillion in August. This marked the lowest monthly trading volume for the year, as per the data compiled by the FCA-authorized benchmark administrator.

The drop in trading activity can be attributed to price fluctuations, resulting in the most substantial long liquidation event since the FTX collapse. Moreover, last month’s figure represents the second-lowest combined trading volume on centralized exchanges since October 2020.

Spot trading volume on centralized exchanges has declined for the second consecutive month, dropping by 7.78% to $475 billion, representing the lowest monthly spot trading volume seen since March 2019.

Daily trading volumes on centralized exchanges also hit $5.90 billion on August 26th, reaching their lowest point since February 7th, 2019. These persistently low trading volumes on centralized exchanges have been observed since April this year and are now on par with the sluggish trading activity witnessed during the bear market of 2019, the report noted.

While Binance continues to hold its position as the largest spot trading platform in the crypto market, with recorded volumes of $183 billion, its market share has declined for the sixth consecutive month. In August, the CZ-led exchange market share fell to 38.5%, marking its lowest market share since August 2022.

In contrast, Huobi experienced a remarkable increase of 46.5% in trading volumes, reaching $28.9 billion, defying the general trend despite insolvency rumors. This represents the second consecutive monthly growth in trading volumes for Huobi, following a significant 79.1% rise last month.

Consequently, The Seychelles-based crypto exchange’s market share has climbed to 6.09%, making it the second-largest exchange after Binance. This achievement represents the highest market share Huobi has attained since October 2021.

Derivatives Not Spared Either

Apart from the decline in spot volumes, derivative trading volumes also witnessed a 12.5% decrease throughout last month, totaling $1.62 trillion. This marked the lowest monthly volume for derivatives since December 2022 and the second-lowest level since 2021.

Derivatives now constitute 77.3% of the overall crypto market, down from 78.2% in July – the third consecutive decrease in the derivatives market share – driven by market volatility that resulted in a significant decline in open interest last month.

Binance held the top position as the largest derivatives exchange by monthly volume, with a total trading volume of $865 billion. Its monthly volume in August saw an 18.1% decrease compared to July. OKX was the second-largest derivatives exchange in August, with a trading volume of $315 billion, followed by Bybit, which ranked third with a trading volume of $205 billion.