Crypto Monthly Trading Volume Drops for First Time in Seven Months to $6.58T

CCData stated that cumulative monthly spot and derivative trading volume decreased by 43.8%.

Binance’s spot market volume recorded its first decline since September 2023.

Cryptocurrency trading volume decreased in April, marking its first decline in seven months, as rising geopolitical tensions and slowing inflows into U.S.-listed spot ETFs weighed on the digital asset market.

Cumulative volume in spot and derivatives markets fell 43.8% to $6.58 trillion, a sharp turnaround from a record high of $9.12 trillion in March, according to a report by London-based digital asset data provider CCData.

While activity in the futures and options market decreased by 47.6% to $4.57 trillion, derivatives once again fell out of favor with investors. Meanwhile, spot market volume fell by a relative 32.6% to $2.01 trillion.

“This decline followed unexpected macroeconomic data, an escalation of the geopolitical crisis in the Middle East, and negative net flows from US spot bitcoin ETFs, leading major crypto assets to pull back on gains made in March,” CCData said. CoinDesk.

Bitcoin {{BTC}}, the leading cryptocurrency by market cap, fell almost 15% last month, falling below $60,000 and breaking a seven-month gaining trend. The selloff comes as an overheated bull market engages in broad-based risk aversion characterized by renewed tensions in the Middle East, the diminished likelihood of a rapid rate cut by the Fed this year and a strengthening in the dollar index.

The CoinDesk 20 Index, a measure of the most liquid digital assets, traded down nearly 20% and total crypto market capitalization fell 16.8% to $2.177 trillion.

Monthly spot volume of 11 AA-A rated exchanges. (CCData)

While Binance remains the largest crypto exchange by volume, its spot and derivatives market share combined fell to 41.5%. The exchange’s spot market trading volume fell 39.2% to $679 billion in April, marking its first decline since September 2023.

“The decline in Binance’s market share coincided with the news that its founder and previous CEO Changpeng Zhao was sentenced to four months in prison for violating US money laundering laws,” CCData said.

Binance CEO Changpeng “CZ” Zhao resigned after pleading guilty to US charges in November and was replaced by Richard Teng. Since then, Binance’s spot market share has increased from 30.8% to 33.8%, CCData said.