Global crypto exchange Binance experienced a significant decline in trading activity in September.
According to a CCData report, trading volume for derivatives on Binance fell by 21% to $1.25 trillion in September, the lowest level since October 2023. With the decline in activity, the exchange’s derivatives market share stood at 40.7% at the end of the month — the lowest since September 2020.
The downward trend also affected spot trading volume, which dropped by 22.9% to $344 billion, marking the lowest monthly spot volume since November 2023. The decline in spot trading reduced Binance’s market share to 27%, the lowest since January 2021.
Combined spot and derivatives, the exchange’s overall market share slumped to 36.6%, which was also the lowest since September 2020.
Despite the drop in activity, Binance still leads the global spot trade market among centralized exchanges (CEXs) by volume.
Change in Market Share among CEXs. Source: CCData
Meanwhile, Crypto.com continues to gain ground among centralized exchanges. Its spot and derivatives volumes rose 40.2% and 42.8% in September to $134 billion and $149 billion, respectively. With a combined market share of 11% in September, Crypto.com has become the fourth-largest exchange by volume.
Still, the overall trading activity on centralized exchanges mirrored Binance’s slump. The total combined spot and derivatives trading volume fell by 17% to $4.34 trillion, recording the lowest monthly volume since June.
According to CCData, the decline “aligns with historical seasonality trends, which typically see lower trading activity in late summer.” Monthly spot trading volumes on exchanges fell by 17.2% to $1.27 trillion, while derivatives trading volumes dropped by 16.9% to $3.07 trillion.
Analysts anticipate a resurgence in trading activity in the coming months as the US Federal Reserve ramps up rate cuts, which is expected to boost liquidity and capital flows into riskier assets, including cryptocurrencies.
“The decline in trading activity marks the end of the seasonality period with catalysts — including the Federal Reserve’s first interest rate cut since March 2020 — likely to spark the next leg up in the current cycle,” the report concluded.
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