- Centralized crypto exchanges report a significant 19.3% decline in trading volumes in September, reminiscent of October 2020 levels.
- Key players KuCoin and Crypto.com suffer the most, with trading volumes plummeting by 32% and 31%, respectively.
Crypto Trade Volumes: A Bearish Symphony
The cryptocurrency realm, frequently characterized by its volatility, is exhibiting a pronounced downturn. Centralized crypto exchanges, in particular, are experiencing a palpable contraction in trading activity. This ebb in enthusiasm isn’t isolated but paints a broader picture of the prevailing bear market sentiment.
Trade Volumes in Retreat
A meticulous report divulged by the industry publication, Wu Blockchain, on October 16th, sheds light on this shrinking activity. According to their findings, spot trading volumes across major crypto exchanges have receded by an alarming 19.3% on a month-on-month basis for September. In fact, the current volume marks the lowest since the similar trading environment seen in October 2020.
While the decline in trading activity is pervasive, certain exchanges bear the brunt of this downturn more acutely. KuCoin and Crypto.com, two pivotal actors in the crypto theatre, have registered substantial monthly trading volume losses, standing at 32% and 31%, respectively.
Further, Binance, the leviathan of crypto exchanges, reported a trading volume contraction of nearly 30% in September. In stark figures, it plummeted to $133 billion from an impressive $189 billion in August. Simultaneously, other exchange giants such as Huobi and OKx witnessed volume drops of 25% and 21% respectively, with Coinbase not far behind, recording a 20% drop.
Cumulatively, when examining the thirteen exchanges under the microscope, there was a collective volume reduction of 19.3%. This translated to a decline from $406 billion in August to a diminished $328 billion in September.
Moreover, crypto derivative trading didn’t remain insulated from this trend. A holistic monthly contraction of about 15% was observed, with the figures dwindling from $1.9 billion to $1.6 billion in September. While exchanges like Crypto.com, KuCoin, and Bitget were most affected, it’s noteworthy to mention that certain trading figures might be inflated due to practices such as bot or wash trading.
Parallelly, the digital footfalls to these crypto exchanges, gauged in terms of web traffic, also mirrored the bearish sentiment. On average, a decline of 17.4% was seen in September.
Decentralized Exchanges Buck the Trend
In contrast, decentralized exchanges (DEXes), according to data aggregator DeFiLlama, maintained a relative consistency in volumes over the past few months, with weekly trading figures hovering around $11.7 billion. The global crypto market cap, as reported by CoinGecko, rests at $1.12 trillion and has been fairly stagnant for the past sixty days. Meanwhile, Bitcoin, after a fleeting surge, seems to be reverting to its former levels.