In the month of June, trading volume on centralized exchanges experienced a significant decline of 21.8%, marking the third consecutive month of diminishing activity since March. The combined spot and derivatives trading volume across these platforms amounted to $4.2 trillion, down from a peak of $9 trillion recorded earlier in the year. The decrease in trading volume can be attributed to several key factors, with one major factor being the notable decrease in open interest in derivatives exchanges. In June, open interest on derivatives exchanges fell by 9.67% to $47.11 billion.
Coinbase, for example, experienced a significant decline in open interest, dropping by 52.1% to $18.2 million. This decline was attributed to a series of liquidations triggered by a drop in cryptocurrency prices throughout June and into July. Analysts identified selling pressures from various sources, including the aftermath of Mt. Gox repayments and Bitcoin sales by the German government. The futures market on the Chicago Mercantile Exchange (CME) also saw a notable decline in trading volume, falling by 11.5% to $103 billion in June.
Over the past six months, exchanges like Dubai-based Bybit, Singapore-based BitGet, and HTX saw gains in market share, while Binance saw a significant decrease in market share from 40.4% to 31.2%. Bybit increased its market share by 2.01% to 8%, indicating a shift in popularity among traders. These changes in market share reflect the evolving landscape of centralized exchanges and the preferences of traders.
Average funding rates across the analyzed exchanges stabilized somewhat, rebounding from the negative rates observed in the previous month. This stabilization suggests a potential shift in investor sentiment and market dynamics. BTC options trading volume declined by 28.2% to $1.50 billion, while ETH options trading volume experienced the largest decline, plummeting by 58.0% to $408 million. This decline in options trading volume can be attributed to increased activity in spot Ether ETFs trading following the SEC’s approval in May.
The decline in trading volume on centralized exchanges highlights the dynamic nature of the cryptocurrency market and the various factors that can influence trading activity. As the market continues to evolve, it is important for traders and investors to stay informed about these trends and adapt their strategies accordingly.