Key Points
- Crypto exchange trading volumes have declined for the third consecutive month since March 2024.
- Institutional interest in Ethereum (ETH) experienced a significant drop in June, according to CME data.
Crypto exchange trading volumes experienced a further decrease in June, continuing a trend that began in March 2024.
According to the CCData report, combined trading volumes fell for the third month in a row, dropping 21.8% to $4.22 trillion.
Factors Influencing the Decline
The report suggests that the drop is due to the overall sideways movement and losses for leading assets, Bitcoin (BTC) and Ethereum (ETH).
In June, derivatives trading volume fell more than the spot sector. Spot trading volume decreased by 19.3% to $1.33 trillion, marking the third consecutive monthly drop from a record high of $2.94 trillion in March.
The derivatives market experienced an even more significant decline, with volumes down 22.8% to $2.89 trillion. This decline was also reflected by a significant drop in liquidity within the derivatives market, as tracked by open interest (OI) rates.
Impact on Exchanges
In June, a nearly 10% drop in OI was recorded, with Coinbase taking the largest hit due to massive liquidations. Despite a 9.93% drop in OI for Binance, it topped with $19.4 billion in open interest among centralized exchanges.
Options volumes that surged in May, especially for ETH, were wiped out by June drawdowns. CME data showed that institutional interest in ETH, based on options volume, dropped significantly in June.
Analysts have suggested that the final approval and launch for ETH ETFs next week could bolster trading volumes across the spot and derivatives market. However, the market’s reaction to this development remains to be seen.
