In a surprising turn of events, the cryptocurrency market experienced a significant resurgence in trading volume during the month of June. Both spot and derivatives trading on centralized exchanges (CEXs) witnessed a surge, marking a welcome departure from the previous period of stagnation. This sudden boost in activity can be attributed to a combination of regulatory concerns and a wave of positive investor sentiment following BlackRock’s ETF filing.
According to the latest report from CCData, the combined trading volume for spot and derivatives on CEXs experienced a remarkable 14.2% increase, soaring to an impressive total of $2.71 trillion. This surge represents the first upswing in trading volume seen in the past three months, fueled primarily by significant industry events such as BlackRock’s ETF filing and the regulatory challenges faced by prominent exchanges like Binance and Coinbase in the United States.
Binance, one of the leading cryptocurrency exchanges, witnessed a decline in its market share due to an unprecedented surge in user withdrawals following the Securities and Exchange Commission’s (SEC) lawsuit on June 5. As a result, Binance’s market share plummeted by 1.40% to 41.6%. Its US-based counterpart, Binance.US, also experienced a marginal decline in market share, slipping by 0.86% to 0.36%. In contrast, Coinbase demonstrated the least decline among major exchanges, with its market share experiencing only a minimal slide of 0.08% to 5.36%.
The SEC lawsuits against Binance and Coinbase sent shockwaves through the crypto markets, triggering volatility and uncertainty. However, amidst the chaos, investor sentiment received a significant boost with the filing of BlackRock’s spot Bitcoin ETF. This development had a profound impact on spot trading activity, driving a staggering 16.4% surge in volume, which reached an impressive $575 billion in June. It is worth noting, however, that spot trading volumes on CEXs remain historically low, with the second quarter of 2023 marking the lowest quarterly volumes since 2019.
Alongside spot trading, derivatives trading also experienced a notable resurgence during June, with trading volume increasing by 13.7% to reach a substantial $2.13 trillion. Binance emerged as the dominant force in the derivatives crypto trading landscape, boasting an extraordinary trading volume exceeding $1.21 trillion. Following closely behind was the OKX exchange, with $416 billion in trading volume, reflecting an astounding 44.9% increase in activity.
Bitcoin futures trading on the CME exchange witnessed a remarkable surge in volume, reaching an impressive $37.9 billion, representing a significant 28.6% increase. This figure stands as the highest volume traded on the derivatives exchange since November 2021. Furthermore, Ether futures trading volume demonstrated growth, rising to $8.91 billion, a notable 9.93% increase during the month.
The substantial increase in Bitcoin futures trading volume over the past couple of months highlights heightened trading activity by institutional entities, as markets speculate over the SEC’s decision regarding multiple spot Bitcoin ETF filings. The anticipation surrounding this decision has contributed significantly to the surge in trading volume, particularly in the derivatives market.
In conclusion, the cryptocurrency market experienced a significant resurgence in trading volume during June, driven by a combination of regulatory challenges faced by prominent exchanges and the positive impact of BlackRock’s ETF filing. Spot trading activity witnessed a remarkable surge, although volumes remain historically low. Derivatives trading also rebounded strongly, with Bitcoin futures taking the lead. As the crypto market continues to evolve, traders and investors eagerly await the SEC’s decision, knowing that it will undoubtedly shape the market’s future trajectory.
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