Crypto trading volumes on centralized exchanges have continued to decline sharply. A report from CCData reveals that both spot and derivatives trading volumes experienced a significant drop in June, perpetuating a downward trend that has been ongoing since March 2024. During March, digital asset volumes hit an all-time high of $9.05 trillion, but by June, these volumes had decreased by 21.8%, reaching $4.22 trillion.
This decline can be attributed largely to the stagnation of major cryptocurrencies like Bitcoin and Ethereum, which have remained relatively flat and have dragged down overall trading volume. June marked the third consecutive month of falling trading volumes on centralized exchanges, underscoring a broader trend of diminishing activity in the crypto market.
In detail, the combined spot and derivatives trading volume fell by 21.8% to $4.22 trillion. Open interest on derivatives exchanges also saw a downturn, decreasing by 9.67% to $47.11 billion in June. This drop in open interest was driven by a wave of liquidations that continued into July. Coinbase, in particular, experienced a dramatic drop in open interest, plummeting by 52.1% to $18.2 million. Despite maintaining the largest position among centralized exchanges, Binance’s open interest also fell, decreasing by 9.93% to $19.4 billion.
Institutional volumes on CME did not escape this decline either. After a strong performance in May, June’s total futures trading volume on CME fell by 11.5% to $103 billion. Bitcoin (BTC) options trading volume dropped by 28.2% to $1.50 billion, while Ethereum (ETH) options trading volume faced an even steeper decline, falling by 58.0% to $408 million.
The approval of spot Ethereum ETFs in May initially spurred a surge in trading activity, but this momentum cooled significantly in June. This cooling period has impacted the exchange market share as well. Compared to December, Bybit, Bitget, and HTX saw the largest increases in market share, rising by 2.01%, 1.74%, and 1.43%, respectively. From the second half of 2023 to the first half of 2024, Bybit, Bitget, and Gate.io showed the most significant gains, increasing their market share by 4.07%, 3.47%, and 2.71%, respectively.
Conversely, Binance’s market share dropped substantially, falling from 40.4% in July 2023 to 31.2% in June 2024, a decrease of 9.16%. Despite this, average funding rates across the four analyzed exchanges stabilized slightly, recovering from the previous month’s negative rates. A negative funding rate typically indicates a bearish market, where short position holders pay long position holders. However, as Bitcoin prices recovered and climbed back above $60,000, bullish sentiment returned to the market, reversing some of the negative trends.
This ongoing decline in trading volumes and open interest reflects broader market dynamics and investor sentiment. The stagnation of major cryptocurrencies, coupled with economic uncertainties and shifts in market structure, has led to a more cautious approach among traders and investors. As the market adjusts to these changes, it will be crucial to monitor how centralized exchanges adapt and whether they can regain momentum in the coming months.