The Grayscale victory over the SEC has dealt a blow to the financial regulator’s enforcement efforts against the cryptocurrency industry. However, despite this landmark win, the crypto market has seen a noticeable decrease in the accumulation of crypto assets in the spot market. CCData’s latest report reveals a continued losing streak in August, with minor fluctuations.
The total trading volume for spot and derivatives on centralized exchanges experienced an 11.5% decline in August, reaching $2.09 trillion. This marks the lowest monthly trading volume for the year. The decline can be attributed to price fluctuations, resulting in the most substantial long liquidation event since the FTX collapse. Furthermore, 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. This represents the lowest monthly spot trading volume seen since March 2019. Daily trading volumes on centralized exchanges also hit a low of $5.90 billion on August 26th, the lowest point since February 7th, 2019. These persistently low trading volumes on centralized exchanges have been observed since April this year and are reminiscent of the sluggish trading activity witnessed during the bear market of 2019.
While Binance remains the largest spot trading platform in the crypto market, with recorded volumes of $183 billion, its market share has been declining for the sixth consecutive month. In August, Binance’s market share fell to 38.5%, the lowest market share since August 2022. On the other hand, Huobi experienced a remarkable increase of 46.5% in trading volumes, reaching $28.9 billion. This defies the general trend and rumors of insolvency. Huobi’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.
In addition to the decline in spot volumes, derivative trading volumes also saw a 12.5% decrease in August, totaling $1.62 trillion. This marks 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. This is the third consecutive decrease in the derivatives market share, driven by market volatility and a decline in open interest.
Binance held the top position as the largest derivatives exchange by monthly volume, with a total trading volume of $865 billion. However, its monthly volume in August saw an 18.1% decrease compared to July. OKX ranked second with a trading volume of $315 billion, followed by Bybit in third place with a trading volume of $205 billion.
The crypto market’s trading volumes have experienced a significant decline in August. Despite Grayscale’s victory over the SEC, there has been a decrease in the accumulation of crypto assets in the spot market. This decline can be attributed to price fluctuations and the long liquidation event since the FTX collapse. Binance continues to be the largest spot trading platform, but its market share has been consistently declining, while Huobi has seen significant growth. Derivative trading volumes also decreased, driven by market volatility and a decline in open interest. The overall outlook for the crypto market in terms of trading volumes remains cautious, as the industry faces various challenges and fluctuations.