Recent data shows a significant decline in trading volume on centralized exchanges, specifically in the derivatives market. In June, the combined spot and derivatives trading volume dropped by 21.8%, continuing a trend of diminishing activity since March. One major contributing factor to this decline was the notable decrease in open interest on derivatives exchanges, which fell by 9.67% in June to $47.11 billion. Platforms like Coinbase experienced a substantial drop in open interest, decreasing by 52.1% to $18.2 million.
Analysts attribute this decline to various selling pressures from factors such as Mt. Gox repayments and Bitcoin sales by the German government. The aftermath of these events triggered a series of liquidations, leading to a drop in cryptocurrency prices throughout June and into July. The futures market on the Chicago Mercantile Exchange (CME) also saw a significant decline in trading volume by 11.5%, reflecting decreased interest in futures contracts for major cryptocurrencies like Bitcoin and Ethereum.
Over the past six months, the market share of Dubai-based exchange Bybit increased by 2.01% to 8%, while Singapore-based exchanges BitGet and HTX saw gains of 1.74% and 1.43%, respectively. On the other hand, Binance experienced a decline in market share from 40.4% in July 2023 to 31.2% in June 2024, marking a decrease of 9.16%. This shift in market share indicates a changing landscape in the cryptocurrency trading industry.
BTC options trading volume declined by 28.2% to $1.50 billion, while ETH options trading volume plummeted by 58.0% to $408 million. This decline in options trading volume can be attributed to increased activity in spot Ether ETFs driven by the SEC’s approval in May. The market is anticipating the launch of eight spot Ether ETFs expected on July 23, which may further impact trading volume in the coming months.
The cryptocurrency trading industry is experiencing significant shifts in trading volume, market share, and derivatives market activity. Factors such as liquidations, selling pressures, and regulatory approvals are influencing the behavior of traders and investors. As the market continues to evolve, it will be essential for participants to adapt to these changing dynamics to navigate the challenges and opportunities presented in the cryptocurrency space.