Grayscale’s victory over the SEC could be seen as a major blow to the financial regulator, which has stepped up its enforcement efforts against the cryptocurrency industry. However, this historic victory did not translate into a significant increase in the accumulation of crypto assets in the spot market.
In fact, CCData’s latest report has revealed that despite minor ups and downs, the losing streak continued in August.
spot volume hits
Total trading volume for spot and derivatives on centralized exchanges saw an 11.5% decline, reaching $2.09 trillion in August. This is the lowest monthly trading volume for the year, according to data compiled by the FCA-authorized benchmark administrator.
The decline in trading activity can be attributed to price fluctuations, which resulted in the largest long liquidation event since the FTX collapse. Additionally, last month’s figure represented the second-lowest combined trading volume on centralized exchanges since October 2020.
Spot trading volume on centralized exchanges declined for the second consecutive month, falling by 7.78% to $475 billion, the lowest monthly spot trading volume seen since March 2019.
Daily trading volume on centralized exchanges also reached $5.90 billion on August 26, reaching its lowest point since February 7, 2019. The persistently low trading volumes on centralized exchanges have been observed since April this year and equates to the sluggish trading activity seen now. The report said that during the bear market of 2019.
While Binance retained its position as the largest spot trading platform in the crypto market with a record volume of $183 billion, its market share declined for the sixth consecutive month. In August, CZ-led exchange market share fell to 38.5%, its lowest market share since August 2022.
In contrast, Huobi bucked the general trend and experienced a notable increase of 46.5% in trading volume, reaching $28.9 billion, despite bankruptcy rumors. This represents the second consecutive monthly increase in trading volume for Huobi, following a significant increase of 79.1% last month.
As a result, the Seychelles-based crypto exchange’s market share has climbed to 6.09%, making it the second largest exchange after Binance. This achievement represents the highest market share achieved by Huobi since October 2021.
Derivatives were also not spared
In addition to the decline in spot volumes, derivatives trading volumes also saw a 12.5% decline last month, totaling $1.62 trillion. This is the lowest monthly volume for derivatives since December 2022 and the second lowest level since 2021.
Derivatives now account for 77.3% of the total crypto market, down from 78.2% in July – the third consecutive decrease in derivatives market share – driven by market volatility that resulted in a significant decline in open interest last month.
Binance took the top spot as the largest derivatives exchange by monthly volume, with a total trading volume of $865 billion. Its monthly volume in August saw a decline of 18.1% compared to July. OKEx was the second largest derivatives exchange in August with a trading volume of $315 billion, followed by Bybit, which was in third place with a trading volume of $205 billion.
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source: cryptopotato.com
