Latest market data shows that trading activity on centralized cryptocurrency exchanges suffered a significant downturn in June, with volumes down 21.8% month-on-month. This is the third consecutive month since March that trading volumes have declined.
According to a report released by CCData on July 17, the total spot and derivatives trading volume in June was US$4.2 trillion, showing a clear downward trend compared to the peak of US$9 trillion in March.
This change not only reflects the volatility of market dynamics, but also reveals new trends in the cryptocurrency trading market.
Declining open interest and falling options volumes
CCData’s report reveals several key factors behind the decline in trading volume on centralized exchanges, with the decline in open interest in the derivatives market being particularly prominent. In June alone, this key metric fell by 9.67% to $47.11 billion, while Coinbase’s open interest fell sharply by 52.1% to $18.2 million in July.
The decrease is largely related to the general decline in cryptocurrency prices between June and July, which triggered a series of market liquidations. Analysts said that Bitcoin repayments from Mt. Gox and Bitcoin sales by the German government were partly responsible for this selling pressure.
In addition, the Chicago Mercantile Exchange (CME), the world's largest institutional derivatives exchange, was not immune to the decline in trading volume. After a strong performance in May, trading volume in June fell 11.5% to $103 billion. This change shows that the market's interest in major cryptocurrency futures contracts such as Bitcoin and Ethereum has waned, with Bitcoin futures trading volume falling 11.5% and Ethereum futures trading volume falling 15.8%. These data reflect that the overall trading activity in the cryptocurrency market is undergoing a period of adjustment.
The decline in trading volume in June reflects the adjustment of expectations
Although the approval of the spot Ethereum ETF in May briefly ignited market enthusiasm, trading volume in June failed to continue this momentum and instead fell back. In the past six months, some exchanges such as Dubai's Bybit, Singapore's BitGet and HTX have only increased by 2.01%, 1.74% and 1.43% respectively by increasing their market share, showing that there is still some market vitality.
However, not all exchanges can maintain this growth momentum. For example, Binance’s market share dropped significantly from 40.4% in July 2023 to 31.2% in June 2024, a decrease of 9.16%. This change may reflect increased competition in the market and shifting user preferences.
In addition, it is worth noting that the average financing rates of the four major exchanges have recovered from the negative interest rates last month and stabilized, which may provide some confidence and support to the market.
In the derivatives market, BTC options volume fell 28.2% to $1.50 billion, while ETH options volume plummeted 58.0% to $408 million.
This significant decline in the options market is related to the SEC’s approval of a spot Ethereum ETF in May and the upcoming launch of eight spot Ethereum ETFs. These events may have increased market uncertainty, leading to a reduction in trading activity.
Overall, the decline in trading volume in June reveals the natural adjustment of the cryptocurrency market after a period of enthusiasm, and also highlights the different reactions and expectations of market participants to emerging financial products. #加密货币交易量 #CCData报告 #交易量下降 #市场动态
Conclusion
The cryptocurrency market experienced a significant volume decline in June, with spot and derivatives trading volumes on centralized exchanges falling 21.8% month-on-month, and open interest and options trading volume also experiencing significant decreases. This adjustment period reflects that the market’s response to emerging financial products such as spot Ethereum ETFs is gradually returning to rationality. While some exchanges such as Bybit and BitGet are showing market share gains, the overall market is going through a cooling off period in terms of trading activity.
As the market's understanding of products such as the spot Ethereum ETF deepens, more market dynamics and trend changes are expected in the coming months. Investors should remain vigilant and pay close attention to market developments to make more informed investment decisions. This is not only a natural adjustment in the market, but also an important assessment of the long-term potential of emerging financial products.
