Crypto trading sinks to 2019 levels as Binance sees market dip and Huobi volumes surge

cyptouser3 months agoDecentralized Exchanges97

Crypto trading sinks to 2019 levels as Binance sees market dip and Huobi volumes surge

Spot and derivatives trading activities on centralized cryptocurrency exchanges declined for the second consecutive month by 11.5% to $2.09 trillion, setting a new low for the current year, according to CCData.

The crypto data aggregator reported that spot trading activities fell 7.78% to $475 billion in August, the lowest volume recorded since March 2019. CCData stated that daily volumes on centralized exchanges also hit a low of $5.90 billion on August 26, the weakest since Feb. 7, 2019.

 

Crypto exchanges
Source: CCData

Per CCData, the decreased crypto trading activity was despite Grayscale’s recent success against the U.S. Securities and Exchange Commission (SEC). According to the firm, the legal victory failed to spur a meaningful accumulation of crypto assets. The firm wrote:

“The trading volumes on centralised exchanges have remained low since April this year and are now comparable to the stagnant trading activity in the bear market of 2019.”

Binance market share falls

While Binance continues to lead in spot trading volume with $183 billion, it’s noteworthy that the exchange’s market share has declined consistently for six consecutive months, now resting at 38.5%—its lowest point in the past year.

Binance’s recent setbacks can be primarily attributed to regulatory and legal issues, which have prompted significant changes within the company’s top leadership. Several high-ranking executives have departed, ostensibly for personal reasons; however, there is widespread speculation that their departures are linked to mounting regulatory pressures.

An example of how these issues have affected Binance is how its trading volume within Russia plummeted by over 80%, according to Kaiko data. Although Binance has publicly stated its commitment to adhering to imposed sanctions on the country, recent media reports have raised questions about the exchange’s continued use of sanctioned financial institutions to facilitate peer-to-peer transactions.

Huobi volume climbs

In August, the Huobi Exchange experienced a substantial boost in its spot trading volume. Notably, its spot trading volume surged by an impressive 46.5%, reaching $28.9 billion. This surge catapulted Huobi into the position of the second-largest platform in the industry and saw its spot market share jump to 6.3%, its highest point since October 2021.

Huobi Market share
Source: CCData

This surge in Huobi’s trading activity has drawn significant attention, particularly in light of its associations with Justin Sun, the founder of Tron’s network, and ongoing inquiries regarding its stablecoin reserves.


The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Binance records mild outflow as another top executive leaves

Binance records mild outflow as another top executive leaves

Binance confirmed to CryptoSlate in a Sept. 4 email that its head of product, Mayur Kamat,...

Bitstamp to halt U.S. trading of seven tokens identified as securities by SEC in Coinbase, Binance c

Bitstamp said on Aug. 8 that it would halt U.S. trading for several cryptocurrencies...

Binance and The Weeknd mix music, crypto, and philanthropy in upcoming tour

Crypto exchange Binance is sponsoring The Weeknd’s “After Hours Til Dawn” tour in Australi...

Binance calls for dismissal of CFTC charges citing lack of jurisdiction

Binance calls for dismissal of CFTC charges citing lack of jurisdiction

Binance has moved to dismiss the charges filed against it and CEO Changpeng ‘CZ’ Zhao by the U....

Crypto.com gains Netherlands approval after Binance exit

Crypto.com announced on July 28 it has secured registration approval from De Nederlandsche...