Crypto Trading Volumes on Centralised Exchanges Decline Amid Increased Market Volatility

Crypto Trading Volume Plummets 53% Across Centralised Exchanges

Centralised exchanges around the world are experiencing a significant decline in crypto trading volumes over the past few months. According to data from CCData, the trading volumes of digital assets saw a steep drop of 21.8 percent in June alone. Several macro-economic factors have contributed to this downturn, including the recent dip in Bitcoin’s price, the introduction of new ETFs, and the selling pressure resulting from Germany’s BTC offloading. This downward trend in trading volumes has been ongoing since April, indicating a broader slowdown in the market.

The data reveals that across all centralised exchanges, the volume of crypto trading plummeted by a staggering 53 percent between March and June this year. In March, the trading volume was a robust $9 trillion (roughly Rs. 7,52,58,495 crore), but by June, it had fallen dramatically to $4.2 trillion (roughly Rs. 3,51,20,631 crore). This sharp decline highlights the volatility and unpredictability that continue to characterize the cryptocurrency market.

Further analysis from CCData shows that open interest on derivatives exchanges also declined by 9.67 percent, dropping to $47.11 billion (roughly Rs. 3,93,026 crore). This decrease followed a series of liquidations triggered by the significant drop in cryptocurrency prices observed in June, which continued into July. Additionally, the total futures trading volume on the Chicago Mercantile Exchange (CME) experienced a notable decline, falling by 11.5 percent to $103 billion (roughly Rs. 8,61,313 crore) in June.

Despite the overall decline, some exchanges managed to increase their market share during this period. Bybit, Bitget, and HTX saw the largest gains, with market share increases of 2.01 percent, 1.74 percent, and 1.43 percent, respectively. These exchanges appear to have benefited from the shifting dynamics in the market, even as overall volumes decreased.

The ongoing volatility in the cryptocurrency market continues to pose challenges for traders and investors. With trading volumes on the decline, market participants are likely to remain cautious, especially in light of the uncertain macro-economic conditions.