The volumeof cryptocurrency spot trading on centralized exchanges (CEXs) plunged 21.8%in May to $495 billion, marking the lowest monthly trading volume since March 2019. Also, derivatives trading volumes slumped 15.7% to$1.95 trillion, which is the lowest since December 2022.
Thesefigures are according to new data by digital asset data provider, CCData,previously known as CryptoCompare. Moreover, CCData is a benchmark administrator authorizedby the UK Financial Conduct Authority.
Accordingto the firm, despite the decrease in derivatives trading volumes on CEXs, themarket share of the segment reached an all-time-high last month, expanding to79.8%. However, the volume of spot and derivatives trading combined slid 15.7% to $2.41 trillion.
CCDataexplained that the volume represents the second consecutive drop in monthlyvolumes of the combined activities. The decrease came as the prices of digitalassets fluctuated within a relatively narrow range during the period.
“Thepopularity of meme coins traded on decentralized venues has also contributed tothe declining trading activity on centralized exchanges,” CCData added.
Binance Shrinks, CME Grows
Giving moredetails on the cryptocurrency trading market, CCData noted that spot trading onBinance, the world’s largest cryptocurrency exchange by trading volume,nosedived 26% to $221 billion in May. In addition, Binance’s spot marketshare shrank for the third consecutive month, slipping to 43%.
The dataanalytics firm attributed Binance's continued weakness to the halting of zero-freetrading for stablecoin USDT pairs, general weakness in the market and increasedscrutiny from regulators.
Finance Magnates reported that cryptocurrency exchangesin the United States continue to face regulatory crackdown, with Binance and Coinbase sued this week by the federal securities regulator for allegedlyoperating illegal exchanges and offering unregistered crypto asset securities.
Meanwhile, CCData’s data shows that Chicago Mercantile Exchange (CME) remainedresilient in the face of plummeting volumes in the crypto derivatives industry.The top derivatives exchange posted a marginal growth of 0.53% in itsderivatives volume, with total trades worth $39.1 billion.
“CME'sresilience can be attributed to continued institutional interest in Bitcoin, asdemonstrated by a 10.5% surge in BTC futures volume to $29.5bn,” CCData noted.
Moreover,CCData shows that Uniswap, the biggest decentralized crypto exchange in the world,continued to outperform all CEXs, with the exception of Binance, for the fourthconsecutive month. This is despite the fact that the exchange’s volume fell 11.6% to $33 billion last month.
Uniswapfunctions as a non-custodial exchange that enables users to trade Ethereum blockchain-based ERC-20 tokens directly with each other without the need for athird party.
UK bank taps Integral; StoneX's prime brokerage; read today's news nuggets.
The volumeof cryptocurrency spot trading on centralized exchanges (CEXs) plunged 21.8%in May to $495 billion, marking the lowest monthly trading volume since March 2019. Also, derivatives trading volumes slumped 15.7% to$1.95 trillion, which is the lowest since December 2022.
Thesefigures are according to new data by digital asset data provider, CCData,previously known as CryptoCompare. Moreover, CCData is a benchmark administrator authorizedby the UK Financial Conduct Authority.
Accordingto the firm, despite the decrease in derivatives trading volumes on CEXs, themarket share of the segment reached an all-time-high last month, expanding to79.8%. However, the volume of spot and derivatives trading combined slid 15.7% to $2.41 trillion.
CCDataexplained that the volume represents the second consecutive drop in monthlyvolumes of the combined activities. The decrease came as the prices of digitalassets fluctuated within a relatively narrow range during the period.
“Thepopularity of meme coins traded on decentralized venues has also contributed tothe declining trading activity on centralized exchanges,” CCData added.
Binance Shrinks, CME Grows
Giving moredetails on the cryptocurrency trading market, CCData noted that spot trading onBinance, the world’s largest cryptocurrency exchange by trading volume,nosedived 26% to $221 billion in May. In addition, Binance’s spot marketshare shrank for the third consecutive month, slipping to 43%.
The dataanalytics firm attributed Binance's continued weakness to the halting of zero-freetrading for stablecoin USDT pairs, general weakness in the market and increasedscrutiny from regulators.
Finance Magnates reported that cryptocurrency exchangesin the United States continue to face regulatory crackdown, with Binance and Coinbase sued this week by the federal securities regulator for allegedlyoperating illegal exchanges and offering unregistered crypto asset securities.
Meanwhile, CCData’s data shows that Chicago Mercantile Exchange (CME) remainedresilient in the face of plummeting volumes in the crypto derivatives industry.The top derivatives exchange posted a marginal growth of 0.53% in itsderivatives volume, with total trades worth $39.1 billion.
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“CME'sresilience can be attributed to continued institutional interest in Bitcoin, asdemonstrated by a 10.5% surge in BTC futures volume to $29.5bn,” CCData noted.
Moreover,CCData shows that Uniswap, the biggest decentralized crypto exchange in the world,continued to outperform all CEXs, with the exception of Binance, for the fourthconsecutive month. This is despite the fact that the exchange’s volume fell 11.6% to $33 billion last month.
Uniswapfunctions as a non-custodial exchange that enables users to trade Ethereum blockchain-based ERC-20 tokens directly with each other without the need for athird party.
UK bank taps Integral; StoneX's prime brokerage; read today's news nuggets.
