TL;DR
- In April, the crypto market experienced its first monthly decline in trading volume in seven months, with a decrease of 43.8% to $6.58 trillion.
- The decline was attributed to the fall in the price of Bitcoin, which dropped nearly 15% due to escalating geopolitical tensions and a slowdown in inflows into U.S.-listed spot ETFs.
- Both derivatives and spot markets saw significant declines, with a contraction of 47.6% and 32.6% respectively. Additionally, Binance’s market share fell to 41.5% due to a 39.2% drop in its spot market volume.
In April, the crypto market experienced the first monthly decrease in trading volume in seven months. According to a report from the digital asset data firm CCData, the total trading volume, in both spot and derivatives markets, dropped by 43.8%, falling to $6.58 trillion. This represents a significant retreat from the record reached in March, when the monthly volume reached $9.12 trillion.
The decline in trading volume was attributed to a series of factors. Firstly, Bitcoin, the leading cryptocurrency by market capitalization, suffered a drop of nearly 15% in April, ending a streak of seven months of continuous gains. The plunge in BTC price occurred amidst escalating geopolitical tensions and a slowdown in inflows into U.S.-listed spot ETFs.
/1 Our latest Exchange Review is now live! This monthly report provides readers with insights into #crypto exchange volumes.
In April, the combined volume of spot and derivatives trading on centralised exchanges fell by 43.8% to $6.58tn. pic.twitter.com/PLTU9dC6Pk
— CCData (@CCData_io) May 9, 2024
In terms of trading activity, both derivatives and spot markets experienced significant declines. The volume of derivatives market contracted by 47.6%, falling to $4.57 trillion, while the volume of spot market saw a decline of 32.6%, reaching $2.01 trillion.
Binance Suffers the Fall of the Crypto Market
Another noteworthy data point is the decrease in market share of Binance, one of the largest exchanges in the industry. Although Binance remains in its leadership position, its combined market share dropped to 41.5%. Partly catalyzed by a 39.2% decline in Binance’s spot market volume in April, marking the first decrease since September 2023.
Additionally, the conviction of Changpeng Zhao, founder and former CEO of Binance, who was sentenced to four months in prison for violating money laundering laws in the U.S., likely contributed to the decrease in the platform’s market share. Since then, Zhao has stepped down and was replaced by Richard Teng, and Binance’s market share has shown a slight recovery since then.
April was a month of volatility and retreat for the crypto market, with a significant decrease in trading volume and a decline in market share of one of the major platforms. Investors are monitoring the situation’s evolution and anticipating its impact on the industry globally.
