In June, trading volume on centralized exchanges experienced a significant decline of 21.8%, marking the third consecutive month of diminishing activity since March. The combined spot and derivatives trading volume across these platforms amounted to $4.2 trillion, down from a peak of $9 trillion recorded earlier in the year. One major contributing factor to this decline was a notable decrease in open interest in derivatives exchanges. In June, open interest on these exchanges fell by 9.67% to $47.11 billion, with platforms like Coinbase experiencing a significant drop of 52.1% to $18.2 million.
The decline in trading volume and open interest can be attributed to several external factors, such as the aftermath of Mt. Gox repayments and Bitcoin sales by the German government. These selling pressures from various sources have led to a series of liquidations triggered by a drop in cryptocurrency prices throughout June and into July. Additionally, the futures market on the Chicago Mercantile Exchange (CME) saw a notable decline in trading volume, reflecting decreased interest in futures contracts for major cryptocurrencies like Bitcoin and Ethereum.
While some exchanges managed to increase their market share, others saw a decline in June. Dubai-based exchange Bybit increased its market share by 2.01% to 8%, while Singapore-based BitGet and HTX saw gains of 1.74% and 1.43%, respectively. On the other hand, Binance saw its market share decrease from 40.4% to 31.2%, marking a substantial decline of 9.16%. These shifts in market share reflect the changing landscape of centralized exchange trading volume.
Despite the overall decrease in trading volume, average funding rates across the four analyzed exchanges stabilized somewhat in June. This rebounded from the negative rates observed in the previous month, indicating a potential stabilization in the market. However, BTC options trading volume declined by 28.2% to $1.50 billion, and ETH options trading volume experienced an even larger decline of 58.0% to $408 million. These declines were primarily attributed to increased activity in options trading, driven by regulatory approvals and anticipated launches of new ETFs.
The landscape of centralized exchange trading volume has seen significant changes in recent months, with declines in both trading volume and open interest. External factors, changes in market share, and adjustments in funding rates have all contributed to this shifting landscape. As the market continues to evolve, it will be crucial for traders and exchanges to adapt to these changes and find new strategies for navigating the evolving landscape of centralized exchange trading.
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