CEX Spot and Derivatives Trading Remains Weak Despite Grayscale’s SEC Win

CryptoMode Automate Crypto Trading Profit CEX

Grayscale’s recent win over the SEC raised eyebrows in the finance world. It highlighted the SEC’s intensified focus on the crypto domain. Yet, the triumph surprisingly didn’t boost CEX crypto asset accumulation in the spot market.

CEX Spot Market’s Resilient Behavior 

Despite expectations, CCData’s recent findings revealed a continuation of the downturn in August, albeit with minor variations. Centralized exchange trading, both spot and derivatives, saw an 11.5% decrease. According to FCA-backed benchmarks, the total volume hit $2.09 trillion last month, recording its nadir for 2023.

A slew of factors contributed to this dwindling trading activity. Chief among them were unpredictable price shifts, culminating in the biggest long liquidation since the FTX debacle. The previous month’s figure was the second-lowest since October 2020 in combined trading volume.

Check out our weekly crypto and fintech newsletter here! Follow CryptoMode on Twitter, Youtube and TikTok for news updates!

The spot trading volume on CEX platforms dipped for two months straight, declining by 7.78% to $475 billion in August. This statistic set a new record, being the lowest since March 2019. On a particular note, August 26th witnessed a daily volume of just $5.90 billion – the smallest since February 7th, 2019. Such consistently low numbers have been the norm since April, mirroring the tepid pace of 2019’s bear market.

Binance’s Shifting Dynamics

Binance remains the crypto juggernaut in spot trading, boasting $183 billion in volumes. Yet, it witnessed its market share wane for six successive months. By August, its dominance slipped to 38.5%, a first since the same month in the previous year.

In a surprising twist, Huobi saw trading volumes surge by an impressive 46.5%, reaching $28.9 billion. This surge came amidst swirling insolvency rumors and marked its second consecutive monthly growth. Now, holding 6.09% of the market, Huobi stands second only to Binance – its highest since October 2021.

A Glimpse into CEX Derivative Volumes 

The decline wasn’t exclusive to spot volumes. Derivatives, too, took a hit with a 12.5% fall last month, accumulating to $1.62 trillion. This was the most underwhelming performance since December 2022 and the second-lowest since 2021. Currently, derivatives form 77.3% of the total crypto market, dropping from 78.2% in July. Market unpredictability has led to this drop, alongside a notable plunge in open interest.

Dominating the derivatives scene, Binance reported a trading volume of $865 billion. However, this marked an 18.1% decrease from July. Following closely, OKX held second place with $315 billion. Bybit rounded off the top three, registering a trading volume of $205 billion.

None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.