- Cryptocurrency trading on centralized exchanges fell 12%, CCData claims.
- The decline in volumes may be due to low volatility of BTC and ETH, experts said.
- While overall performance declined, trading volumes on South Korean platforms showed growth.
According to CCData, trading volumes on centralized cryptocurrency exchanges fell to $2.36 trillion. That’s the lowest since the beginning of 2023.
Analysts estimated that trading activity on the CEX fell 12 percent. Spot trade volume fell 10.5% to $515 billion, in line with March 2019 values. Derivatives also fell 12.7% to $1.85 trillion. The last time such low activity was seen was in December 2020.
The research firm believes the decline is due to the lack of volatility in assets such as bitcoin and Ethereum. On certain days of the month, the first cryptocurrency was virtually unchanged.
Analysts say the market share of Binance, the largest cryptocurrency exchange by trading volume, has declined for the fifth consecutive month. Spot trading on the platform hit the $208 billion mark in July. The exchange’s total market share fell to 40.4%. It is reported to be the lowest since August 2022.
With Binance’s decline, trading volumes on South Korean exchanges showed an increase. Thus, the UpBit exchange surpassed OKX and Coinbase and came in second place. The company’s trading figures rose 42.3% to $29.8 billion. Bithumb and CoinOne volumes rose 27.9% and 4.72% to $6.09 billion and $1.39 billion, respectively.
Binance has been licensed in Dubai and Japan to provide exchange services, but has suspended operations in several European countries, including Germany, Cyprus and the U.K. Changpeng Zhao denied allegations that Binance.US might be liquidated in the U.S.