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Grayscale’s triumph over the SEC may be regarded as a significant blow to the financial regulator, which has heightened its enforcement actions against the cryptocurrency sector. Nevertheless, this pivotal victory did not result in a substantial rise in the acquisition of crypto assets within the spot market.
Indeed, CCData’s most recent report revealed that the losing streak persisted in August despite minor variations.
Spot Volumes Takes Hit
The overall trading volume for spot and derivatives on centralized exchanges saw an 11.5% reduction, totaling $2.09 trillion in August. This represented the lowest monthly trading volume for the year, according to data gathered by the FCA-authorized benchmark administrator.
The decline in trading activity can be linked to price volatility, leading to the most significant long liquidation event since the FTX collapse. Furthermore, last month’s figure signifies the second-lowest combined trading volume on centralized exchanges since October 2020.
Spot trading volume on centralized exchanges has decreased for the second month in a row, falling by 7.78% to $475 billion, marking the lowest monthly spot trading volume recorded since March 2019.
Daily trading volumes on centralized exchanges also reached $5.90 billion on August 26th, hitting their lowest level since February 7th, 2019. These consistently low trading volumes on centralized exchanges have been noted since April of this year and are now comparable to the sluggish trading activity seen during the bear market of 2019, as indicated in the report.
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While Binance remains the largest spot trading platform in the crypto market, with reported volumes of $183 billion, its market share has diminished for the sixth consecutive month. In August, the CZ-led exchange’s market share dropped to 38.5%, marking its lowest market share since August 2022.
Conversely, Huobi saw a remarkable surge of 46.5% in trading volumes, reaching $28.9 billion, bucking the overall trend despite insolvency rumors. This marks the second consecutive month of growth in trading volumes for Huobi, following a significant 79.1% increase last month.
As a result, the Seychelles-based crypto exchange‘s market share has risen to 6.09%, making it the second-largest exchange after Binance. This accomplishment represents the highest market share Huobi has achieved since October 2021.
Derivatives Not Spared Either
In addition to the drop in spot volumes, derivative trading volumes also experienced a 12.5% decline last month, totaling $1.62 trillion. This marked the lowest monthly volume for derivatives since December 2022 and the second-lowest level since 2021.
Derivatives now account for 77.3% of the overall crypto market, down from 78.2% in July – the third consecutive decrease in the derivatives market share – driven by market volatility that led to a significant reduction in open interest last month.
Binance maintained its position as the largest derivatives exchange by monthly volume, with a total trading volume of $865 billion. Its monthly volume in August experienced an 18.1% decline compared to July. OKX was the second-largest derivatives exchange in August, with a trading volume of $315 billion, followed by Bybit, which ranked third with a trading volume of $205 billion.
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