After a
record-breaking March driven by equally impressive Bitcoin (BTC) performance,
spot volumes on the top 10 cryptocurrency exchanges dropped by more than 60% in
April. According to a benchmark by Finance Magnates Intelligence, their
trading volume fell from $2.1 trillion in March to just under $1.3 trillion in
April.
Cryptocurrency Exchange
Volumes Plummet Post-Bitcoin Halving
In March,
volumes on the largest cryptocurrency platforms reached their highest levels in
nearly four years, increasing by an average of 120%. This surge coincided with
a new all-time high (ATH) for Bitcoin, recorded on March 14, when the price
tested nearly $74,000, sparking significant investor activity.
In April,
anticipation centered on Bitcoin’s halving, which reduced the reward for mining
new BTC blocks, historically leading to strong price increases. However,
post-halving, the price has dropped, losing over 16% from its ATH.
Consequently,
volumes on major exchanges also declined, with monthly drops averaging 64%.
KuCoin saw the most significant decline, with a 150% decrease to $30 billion,
and Upbit experienced a 135% drop to $94 billion.
“This
decline followed unexpected macroeconomic data, an escalation in the
geopolitical crisis in the Middle East, and negative net flows from U.S. spot
Bitcoin ETFs, leading to major crypto assets retracing the gains they made in
March,” commented CCData in its newest crypto exchange volumes report.
Binance
remains the market leader, accounting for 54% of total trading volume with $699
billion in April 2024. ByBit secured the second spot with 11%, followed by OKX
with 9%. This reshuffling saw Upbit fall from second to fifth place, ByBit rise
to second, and OKX take third.
“The spot
trading volume on Binance fell, recording the first decline in spot volumes,” on
the exchange since September 2023,” CCData added.
Annual Spot Volumes Still
Rising
Comparing
April 2024 to April 2023, the results are not as bleak. Average year-over-year
(YoY) volumes grew by 155%, demonstrating a robust growth trend compared to the
previous year.
ByBit led
the charge with a 610% increase, rising from just under $20 billion to $138
billion over the year. Huobi saw nearly a fourfold increase in spot volumes
from $15 billion, and OKX’s volumes doubled.
“Bitcoin
failed to build on the momentum of the week prior, with the price not able to
make a ‘higher-high’ above the $66,800 level,” commented Simpon Peters, Market
Analyst at eToro. “Instead…
