Binance trading volumes spike 72% despite market decline

Derivative trading volume on the largest exchanges decreased by 1.4% month-on-month in April.

But futures volumes on Binance, the largest centralized exchange (CEX), increased by more than 72% in April compared to March.

According to the Wu Blockchain team, the sharp increase in trading volume is due to Binance introducing a time-limited fee reduction for USDC perpetual contracts, leading to an increase in trading volume for perpetual contracts.

However, apart from this, the total transaction volume in April decreased by 26.6% compared to the previous month. The three biggest decreases in futures trading volumes were Bitget with 16.1%, Crypto.com with 15.6% and HTX with 13.4%.

Source: Wublockchain

Spot trading volume fell further, falling approximately 38% month-on-month. Among all exchanges, Gate was the only exchange to see a 13.7% increase in activity. The exchanges that took the biggest hit were Kucoin with a decrease of 70.8%, Upbit with a decrease of 57.5% and Bitfinex with a decrease of 47.7%.

At the beginning of April, Binance Futures introduced trading fee reductions for all USDC margin perpetual contracts. During the promotion, all Binance users enjoyed discounts on trading USDC margin perpetual contracts.

The promotion began shortly after Binance founder Changpeng Zhao was sentenced to four months in prison for violating the Bank Secrecy Act, resulting in the exchange being fined $4.4 billion.

Zhao pleaded guilty and made a deal regarding the investigation, resigning as CEO of Binance and agreeing to pay a $50 million fine.