Crypto spot trading volume hits 2021 low despite price rise in July

For the month, world’s two greatest cryptocurrencies bitcoin and ethereum rose 18.3% and 11.2% respectively on a month-on-month (MoM) foundation.

Throughout June, China’s persistent crackdown on bitcoin mining within the nation took a heavy toll on the crypto market with costs of the world’s greatest cryptocurrency falling 6% and spot volumes slumping 42.7% in the course of the month.

The continual fall in crypto buying and selling throughout July might be attributed to the regulatory considerations surrounding completely different areas of the cryptocurrency markets.

“For instance, exchanges resembling Binance have seen elevated scrutiny from regulators throughout the globe. Equally, stablecoins have additionally obtained criticism from regulators relating to potential dangers to shoppers and the worldwide monetary system,” CryptoCompare mentioned in a launch.

Throughout July, derivatives buying and selling gained market share over the spot market regardless of the autumn in quantity.

Derivatives volumes reached 56.9% of whole quantity in cryptocurrency markets, the best degree since November 2020 when spinoff volumes took 59.2% of the market share.

“This was after a 22.6% lower in derivatives quantity in July, to $2.5tn. Spot volumes fell to a higher extent, recording a 31.5% fall MoM to $1.9tn, the bottom spot volumes recorded to this point this yr,” the report mentioned.

When it comes to exchange-wise breakup, Binance was the biggest top-tier spot change by quantity in July, buying and selling $455 billion (down 31.9%). This was adopted by OKEx buying and selling $96.8 billion (down 31.4%), and Huobi International buying and selling $92.7 billion (down 42.7%).

BeQuant, Coinbase and FTX adopted with $72.1 billion (down 6.5%), $5.38 billion (down 30.5%) and $35.2 billion (down 12.2%), respectively.

In the meantime, the report famous that derivatives volumes decreased by 22.6% in July to $2.5 trillion. The derivatives market now represents 56.9% of the full crypto market (vs 52.9% in June).

Binance lead the spinoff markets with 55.0% ($1.4 trillion) of whole volumes within the month of July. This was adopted by OKEx (14.9% market share, $368 billion) and Bybit (11.6% market share, $285 billion).