Trading volume on centralized exchanges declined 21.8% in June, marking the third consecutive month of diminishing activity since March.

According to a report by CCData released on July 17, the combined spot and derivatives trading volume across these platforms amounted to $4.2 trillion, down from a peak of $9 trillion recorded in March.

Open Interest and CME Declines

The report highlighted several key factors contributing to this decline. One major factor was a notable decrease in open interest in derivatives exchanges.

In June, OI on derivatives exchanges fell 9.67% to $47.11 billion. This trend persisted into July, with Coinbase experiencing a significant decline in open interest, dropping by 52.1% to $18.2 million.

The decline was attributed to a series of liquidations triggered by a drop in cryptocurrency prices throughout June and into July. Analysts identified selling pressures from various sources, including the aftermath of Mt. Gox repayments and Bitcoin sales by the German government.

The futures market on the Chicago Mercantile Exchange (CME), known as the world’s largest institutional derivatives exchange, also saw a notable decline.

Following a strong May performance, trading volume fell by 11.5% to $103 billion in June, reflecting decreased interest in futures contracts for major cryptocurrencies like Bitcoin and Ethereum. Bitcoin futures trading volume declined by 11.5%, while Ethereum futures fell by 15.8%.

Bybit Gains as Binance Declines

The approval of spot Ethereum ETFs in May caused a frenzy in trading activity, which eventually decreased in June. Over the past six months, Dubai-based exchange Bybit increased its market share by 2.01% to 8%. Similarly, Singapore-based BitGet and HTX saw gains of 1.74% and 1.43%, respectively.

On the flip side, Binance saw its market share decline from 40.4% in July 2023 to 31.2% in June 2024, marking a decrease of 9.16%. Meanwhile, average funding rates across the four analyzed exchanges stabilized somewhat, rebounding from the negative rates observed in the previous month.

BTC options trading volume also declined by 28.2% to $1.50 billion, while ETH options trading volume experienced the largest decline, plummeting by 58.0% to $408 million.

This decline was primarily attributed to increased activity in options trading, driven by the SECs approval of spot Ether ETFs in May, and coincides with the anticipated launch of eight spot Ether ETFs expected on July 23.