Amid an ever-changing crypto market, investors and enthusiasts have been observing a significant decline in trading volumes during the month of September 2023.
According to recent reports, trading volumes on centralized crypto exchanges have plummeted during the month of September, marking their lowest levels since October 2020. This decline has been reflected in both spot trading, derivatives trading and futures and web traffic.
CEX Data in Sep, Spot and Futures Trading Volume Decreases by 19% Month-On-Month, Hitting a Nearly Three-Year Low
The spot bottom three were KuCoin at -32%, Binance at -30%, and Huobi at -25%, the traffic bottom three were Huobi at -63%, Deribit at -29%, and Gate at -19%.… pic.twitter.com/lHwMn7a46V
— Wu Blockchain (@WuBlockchain) October 16, 2023
The data analyzed for the report for the month of September 2023, relating to spot and derivative operations, has been collected from Coingecko, while the information on web traffic has been obtained from Similarweb, both being reliable sources in the extraction of these metrics.
Particularly in spot trading, a decrease of 19.3% has been recorded in September compared to the previous month. This figure is particularly notable if we look at comparisons, as it represents the lowest level in almost three years.
Among the most affected exchanges are Crypto.com, with a decrease of 31%, followed by Upbit with 16%, and Mexc with 4%. At the other end of the list, KuCoin leads the decline with an impressive -32%, closely followed by Binance with -30% and Huobi with -25%.
On the other hand, futures trading volumes have also seen a notable decline, falling 19.6% in September. In this case, too, this figure marks the lowest level since October 2020.
Crypto.com tops the list with a 45% decrease, followed by Bitmart with 22%, and Huobi with 3%. KuCoin, Bitget and Binance are the laggards, recording drops of -27%, -25% and -20%, respectively.
DECREASE IN TRADE AND WEB TRAFFIC
In addition to the decrease in trading volumes, reports extracted with data from SimilarWeb, one of the best providers referring to web traffic, also point to a 17.4% drop in traffic to cryptocurrency exchanges during September.
Bad news is never totalitarian, during the month of September Bitmart experienced a 23% increase, while Huobi suffered a drastic 63% drop in its web traffic metrics. Of course, in general, the picture is similar to trading volume seeing decreases in most cases.
The relationship between web traffic and the cryptocurrency market is multifaceted and significant. Firstly, an increase in the number of visitors to a cryptocurrency exchange tends to be directly related to an increase in trading activity.
This increased activity can drive an increase in trading volumes, which, in turn, has the potential to influence cryptocurrency prices as more investors participate in the market. When analyzing these metrics, the WuBlockchain team mentions as a caveat.
“The following data may be subject to serious suspicions of bot activity or money laundering operations”