You won't believe how much the trading volume in the cryptocurrency market dropped in August! Is it the end of Bitcoin and Ethereum?

GMBStaff

 10 Sep 23

tl;dr

<p>The combined cryptocurrency spot and derivatives trading volume on centralized exchanges reached its lowest level this year in August, dropping 11.5% to $2.09 trillion. This decline coincided with a drop in prices and was similar to the stagnant trading activity observed during the bear mar...

The combined cryptocurrency spot and derivatives trading volume on centralized exchanges saw a significant decline in August, reaching the lowest level this year. According to CCData's August Exchange Review, the trading volume dropped 11.5% to $2.09 trillion, coinciding with a decline in prices. The report suggests that the current trading volumes are similar to the stagnant trading activity observed during the bear market in 2019. Bitcoin and Ethereum both experienced a 13% drop, while XRP fell by 30%, and Cardano dropped 17% during the month.

Spot trading volume on centralized exchanges also decreased for the second consecutive month, declining by 7.8% to $475 billion. This marks the lowest monthly spot trading volume since March 2019. The report highlights that Grayscale's recent win over the SEC, which vacated the rejection of converting Grayscale Bitcoin Trust into an exchange-traded fund, did not have a significant impact on trading volume or Bitcoin's price.

In addition, derivatives volume decreased by 12.5% in August to $1.62 trillion, the lowest level since December 2022. This decline led to a decrease in derivatives' share of the entire crypto market to 77.3% from 78.2% in July, marking the third consecutive month of market share losses. Despite the decline, Binance remained the largest exchange for both the spot market and derivatives, with a 38.5% share in the spot market and 53.5% share in derivatives.

Furthermore, crypto-exposed stocks such as Riot Platforms, Marathon Digital, and Hut 8 Mining also experienced significant declines in August, with each falling about 30% for the month. This decline is evident in the chart provided in the article.

Overall, the August Exchange Review highlights the decline in trading volume in the cryptocurrency market, both in spot and derivatives trading. The report emphasizes the connection between trading volume and price movement, as well as the ongoing market share losses in the derivatives market.