The price of bitcoin has dropped from a $64,000 all-time high in mid-May to a $30,000 low and recovered shortly after. The cryptocurrency has since been trading between $30,000 and $40,000 since and its reduced price and volatility have taken a toll on trading volumes.
According to CryptoCompare’s June 2021 Exchange Review report, spot trading volumes have decreased by 42.7% compared to May, while derivatives trading volumes dropped by 40.7%. Bitcoin and Ethereum futures’ open interest also plunged by 31.8% and 29.3% respectively.
CryptoCompare details that for the first time this year, derivatives volumes surpassed spot volumes over the plunge, and now have 53.8% of the market share compared to 49.4% in May. Derivatives volumes in June were $3.2 trillion, while spot volumes were $2.7 trillion.
The report details Binance was the largest Top-Tier exchange by spot volume in June after trading $668 billion that month, down over 56%. It was followed by Huobi Global, which traded $162 billion, and by OKEx, which traded $141 billion. Binance also led derivatives trading volumes, followed by OKEx on this measure.
It’s worth noting Top-Tier exchanges are those graded AA-BB on CryptoCompare’s Exchange Benchmark, while Lower-Tier exchanges are those graded C-E. These top exchanges saw their market share rise in the continuation of a trend that has been ongoing since December 2019 as the market keeps attracting “further high-grade investment.” While in December 2019 Top-Tier exchanges had 47% of the market, they now handle 88% of the trading volume.
Open interest on cryptocurrency products also dropped 40.9% to $16.4 billion and is now at its lowest level since January 2021.
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