- This follows from the CCData report
- The indicator has been falling for the second month in a row
- Experts attribute this to Q1 overheating and regulatory pressure
- Binance was the hardest hit, losing a fair amount of market share.
In May, the volume of trading in the spot and cryptocurrency derivatives markets decreased by 15.7%. The fall continues for the second month in a row. Experts attribute this to growing regulatory pressure on the industry.
This follows from report analytical company CCData, published on June 7. A similar situation was observed in April. Then the total trading volume on major platforms halved, to $500 billion.
Of all the major exchanges, Binance has been hit the hardest. In May, the company lost part of its market share, which was reduced to 43% (peak from February – 57%). This is largely explained by the fact that the platform canceled zero-commission trading pairs at the end of March.
As a result, the trading volume on the site has been steadily declining both in April and in May. But Bullish, Bybit and BitMEX increased their market share by 1%.
Notably, the report takes into account figures as of the end of May, before the filing of lawsuits against Binance and Coinbase. Apparently, in June the fall will be even more noticeable.
In addition, according to experts, the decline in trading volume will continue as the markets reached overheating in Q1 2023. This can be seen in the chart above.
There is a significant difference between the value of the indicator in March and April, and this does not look like a correction. Apparently, trading volume will not recover until the situation stabilizes.