Crypto Exchange Trading Volumes Decline Significantly Amidst Bear Market
Crypto News – In the midst of a prolonged bear market, centralized crypto exchanges are witnessing a significant downturn in trading volumes. Over the last month alone, trading on some of the industry’s leading exchanges has dropped by more than 20%.
On October 16, industry outlet Wu Blockchain released a detailed report highlighting the dire state of centralized exchange volumes.
Decline in Crypto Exchange Trading
Spot trading volumes on major exchanges saw a sharp decrease of 19.3% month-on-month in September, hitting their lowest level since October 2020 – a span of three years.
Nearly half of the exchanges analyzed experienced a drop of more than 20% in their trading volume from August to September. KuCoin and Crypto.com suffered the most, with a staggering 32% and 31% decrease in their monthly trading volumes, respectively.
Binance, a major player in the industry, saw a nearly 30% decline in trading volume in September, plummeting from $189 billion in the previous month to $133 billion. Huobi experienced a 25% loss, dropping from $31 billion in August to $23 billion in September. OKx and Coinbase also had significant losses, with a 21% and 20% decrease in trading volume, respectively.
In total, the decline for the month across the 13 exchanges measured was 19.3%, dropping from $406 billion in August to $328 billion in September.
Derivatives Trading Decline
The downturn extended to crypto derivatives volumes, experiencing an overall decline of around 15% in futures trading volumes, dropping from $1.9 billion to $1.6 billion in September.
Crypto.com, KuCoin, and Bitget witnessed the most substantial declines in derivatives trading for the month. However, it’s important to note that the report pointed out that some of the trading figures might be influenced by bot or wash trading.
Reduced Web Traffic and Market Conditions
Web traffic to major crypto exchanges also took a hit in September, experiencing an average decline of 17.4% month-on-month across the exchanges.
As for the overall market conditions, DeFiLlama reported relatively stable decentralized exchange volumes over the past few months, with the current weekly volume for DEXes standing at approximately $11.7 billion. However, the total value locked across DeFi continues to decrease, currently sitting at just $41 billion.
CoinGecko reported the global cryptocurrency market cap at $1.12 trillion, reflecting a 2.24% change in the last 24 hours. Despite this recent change, the market has shown little movement over the past two months, with assets trading within a tight range at current levels.
Bitcoin briefly reclaimed the $28K level following a pump induced by fake news on Monday but appears to be retracing again, heading back towards previous levels.
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