Trading volumes on centralized cryptocurrency exchanges saw a nearly 20% drop in June, marking the third consecutive month of decline amid a stagnant market.

Spot trading on cryptocurrency exchanges continued to fall in June, as prices struggled to break the downtrend, leaving traders largely unfazed. Data reveals that total spot trading volume fell by 19.3% in June to $1.3 trillion, significantly down from March’s peak of nearly $3 trillion.

Open interest on derivatives exchanges also dropped in June by nearly 10% to $47.1 billion, largely due to a wave of liquidations triggered by a substantial drop in crypto prices. Coinbase saw a significant decline in its open interest of more than 52% to over $18.2 million, while Binance maintained the biggest position among trading platforms by its $19.4 billion in open interest, which dropped by only 10%.

This decline was exacerbated by fears of selling pressure from Mt. Gox, with the defunct exchange announcing repayment for its users in July. Additionally, the German government contributed to the pressure by selling a major portion of its BTC positions.

Despite the negative landscape, analysts point out that spot prices in the first half of 2024 have increased compared to the second half of 2023, with trading volumes recording a 148% increase, reaching a total volume of $10.7 trillion.

South Korean crypto exchanges, including Upbit, Bitfinex, and KuCoin, recorded significant reductions in trading volumes, with declines of 45%, 38%, and 32%, respectively, as capital exited the digital asset market and investor sentiment turned bearish.

In contrast to the overall trading decline, stablecoin transfers have shown steady growth, indicating widespread adoption. Data indicates that stablecoin transfers have increased over 16-fold in the past four years, reaching a record high of $1.68 trillion in Q2.

Stay updated with the latest cryptocurrency news and trends on Global Crypto News.

Post Views: 5