tl;dr
<p>The combined cryptocurrency spot and derivatives trading volume on centralized exchanges reached its lowest point this year, declining by 11.5% to $2.09T in August. This decrease in volume was primarily influenced by the recent drop in prices and was the largest long liquidation event since...
The combined cryptocurrency spot and derivatives trading volume on centralized exchanges reached its lowest point this year, declining by 11.5% to $2.09T in August. This decrease in volume was primarily influenced by the recent drop in prices and was the largest long liquidation event since the FTX collapse.
Bitcoin and ethereum both experienced a 13% drop in trading volume, while XRP and cardano fell by 30% and 17% respectively. Spot trading on centralized exchanges also saw a decrease of 7.8% to $475B, reaching its lowest monthly spot trading volume since March 2019.
The report suggests that trading volumes on centralized exchanges have remained low since April, comparable to the stagnant activity during the bear market of 2019. Grayscale's win over the SEC in late August did not uplift volume or the price of bitcoin. Additionally, derivatives volume fell by 12.5% to $1.62T, marking the lowest level since December 2022.
Binance remains the largest exchange for both spot and derivatives trading, holding a market share of 38.5% in the spot market and 53.5% in the derivatives market. Crypto-exposed stocks, including Riot Platforms, Marathon Digital, and Hut 8 Mining, also saw significant declines in August.
In conclusion, the cryptocurrency market witnessed a decline in trading volume on centralized exchanges in August, reaching its lowest point this year. The decrease in volume can be attributed to the drop in prices and the largest long liquidation event since the FTX collapse. Spot trading and derivatives volume both experienced significant decreases, while Binance maintained its position as the leading exchange. Crypto-exposed stocks also faced declines during the month.