GMBStaff

 10 Sep 23

tl;dr

<p>The combined trading volume of cryptocurrency spot and derivatives on centralized exchanges declined by 11.5%, reaching the lowest monthly volume of the year and the second-lowest since October 2020. This decrease in volume correlates with the fall in cryptocurrency prices, including Bitcoi...

The combined trading volume of cryptocurrency spot and derivatives on centralized exchanges experienced an 11.5% decline, reaching the lowest monthly volume of the year and the second-lowest since October 2020. This decrease in volume correlates with the fall in cryptocurrency prices, which marked the largest long liquidation event since the collapse of FTX.
During August, Bitcoin and Ethereum both dropped by 13%, XRP tumbled 30%, and Cardano fell 17%. Spot trading on centralized exchanges also saw a decline for the second consecutive month, reaching the lowest monthly volume since March 2019. The report highlights that trading volumes on centralized exchanges have remained low since April and are now comparable to the stagnant trading activity during the bear market of 2019.
Grayscale's recent win over the SEC failed to boost trading volume and Bitcoin's price for the month. While the court vacated the SEC's rejection of converting Grayscale Bitcoin Trust into an exchange-traded fund, it does not give Grayscale permission to proceed with the conversion.
In August, derivatives volume decreased by 12.5% to the lowest level since December 2022, and the share of derivatives in the entire crypto market dropped to 77.3% from 78.2% in July, marking the third consecutive month of market share losses.
Binance remains the largest exchange for both the spot market and derivatives, with a market share of 38.5% and 53.5% respectively. Huobi also saw an increase in its market share for the spot market, while OKX and Bybit followed Binance in terms of derivatives volume.
Crypto-exposed stocks also experienced a decline in August, with Bitcoin miners Riot Platforms, Marathon Digital, and Hut 8 Mining each falling by approximately 30% for the month.

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