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The volume
of cryptocurrency spot trading on centralized exchanges (CEXs) plunged by 21.8%
in May to $495 billion, marking the lowest monthly trading volume since March 2019. Also, derivatives trading volumes slumped by 15.7% to
$1.95 trillion, which is the lowest since December 2022.
These
figures are according to new data by digital asset data provider, CCData,
previously known as CryptoCompare. CCData is also a benchmark administrator authorized
by the UK Financial Conduct Authority.
According
to the firm, despite the decrease in derivatives trading volumes on CEXs, the
market share of the segment reached an all-time-high last month, expanding to
79.8%. However, the volume of spot and derivatives trading combined slid
by 15.7% to $2.41 trillion.
CCData
explained that the volume represents the second consecutive drop in monthly
volume of the combined activities. The decrease came as the prices of digital
assets fluctuated within a relatively narrow range during the period.
“The
popularity of meme coins traded on decentralized venues has also contributed to
the declining trading activity on centralized exchanges,” added CCData.
Binance Shrinks, CME Grows
Giving more
details on the cryptocurrency trading market, CCData noted that spot trading on
Binance, the world’s largest cryptocurrency exchange by trading volume,
nosedived by 26% to $221 billion in May. In addition, Binance’s spot market
share shrank for the third consecutive month, slipping to 43% in May.
The data
analytics firm attributed the continued weakness to the halting of zero-free
trading for stablecoin
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