CCData report: As of June, CEX cryptocurrency trading volume has dropped for three consecutive years

Latest market data shows that trading activity on centralized cryptocurrency exchanges suffered a significant downturn in June, with volumes down 21.8% month-on-month. This is the third consecutive month since March that trading volumes have declined.

According to a report released by CCData on July 17, total spot and derivatives trading volume in June was US$4.2 trillion, showing a clear shrinking trend compared with the peak of US$9 trillion set in March.

This change not only reflects the volatility of market dynamics but also reveals new trends in the cryptocurrency trading market.

Reduced open interest and declining options trading volume

CCData’s report reveals several key factors behind the decline in trading volumes on centralized exchanges, with a drop in open interest in the derivatives market being particularly prominent. In June alone, this key metric fell by 9.67% to $47.11 billion, while Coinbase’s open interest fell sharply by 52.1% in July to $18.2 million.

This reduction is mostly related to a general decline in cryptocurrency prices between June and July, which triggered a series of market liquidations. Analysts say Mt. Gox’s Bitcoin repayments and the German government’s Bitcoin sales are partly responsible for this selling pressure.

In addition, the Chicago Mercantile Exchange (CME), the world's largest institutional derivatives exchange, has not been immune to the decline in trading volumes. After a strong performance in May, trading volumes fell 11.5% in June to $103 billion. This change shows that the market's interest in major cryptocurrency futures contracts such as Bitcoin and Ethereum has waned, with Bitcoin futures trading volume falling by 11.5%, and Ethereum futures trading volume falling by 15.8%. These data reflect that the overall trading activity of the cryptocurrency market is going through a period of adjustment.

June trading volume decline reflects expected adjustments

Although the approval of the spot Ethereum ETF briefly ignited market enthusiasm in May, trading volume in June failed to sustain this momentum and instead fell back. In the past six months, some exchanges such as Bybit in Dubai, BitGet and HTX in Singapore showed that there is still some market vitality by increasing market share, growing by only 2.01%, 1.74% and 1.43% respectively.

However, not all exchanges can maintain this growth momentum. For example, Binance’s market share dropped significantly from 40.4% in July 2023 to 31.2% in June 2024, a decrease of 9.16%. This change may reflect increased competition in the market and shifting user preferences.

In addition, it is worth noting that the average financing rates of the four major exchanges have recovered from last month’s negative interest rates and stabilized, which may provide some confidence and support for the market.

In the derivatives market, BTC options trading volume fell by 28.2% to $1.50 billion, while ETH options trading volume plummeted by 58.0% to $408 million.

This significant decline in the options market is related to the SEC’s approval of a spot Ethereum ETF in May and the upcoming launch of eight spot Ethereum ETFs. These events may have increased market uncertainty, leading to a reduction in trading activity.

Overall, June's decline in trading volume reveals the cryptocurrency market's natural correction after a period of enthusiasm, and also highlights the varying reactions and expectations of market participants towards emerging financial products.

Conclusion

The cryptocurrency market experienced a significant volume decline in June, with spot and derivatives trading volumes on centralized exchanges falling 21.8% month-on-month, and open interest and options trading volume also experiencing significant decreases. This adjustment period reflects that the market’s response to emerging financial products such as spot Ethereum ETFs is gradually returning to rationality. While some exchanges such as Bybit and BitGet are showing market share gains, the overall market is going through a cooling off period in terms of trading activity.

As the market's understanding of products such as spot Ethereum ETFs deepens, more market dynamics and trend changes are expected to emerge in the coming months. Investors should remain vigilant and pay close attention to market developments to make more informed investment decisions. This is not only a natural adjustment in the market, but also an important assessment of the long-term potential of emerging financial products.

The above is the detailed content of CCData report: As of June, CEX cryptocurrency trading volume has dropped for three consecutive years. For more information, please follow other related articles on the PHP Chinese website!