Trading Volume on Centralized Exchanges Plunged to $5.2T in May

Trading Volume on Centralized Exchanges Plunged to $5.2T in May

According to a new report, the overall trading volumes for regulated exchanges have decreased during the month of May. The report suggested that, for the month of March, the same metric experienced a spike of $9 trillion.

The statistics were provided by CCData as the crypto market indicated a visible incline in the retail and derivative trading volumes. The aggregate trading volume for regulated exchanges has decreased by 20.1% or $5.27 trillion.

Bitcoin Price and Trading Volume

This decline is characterized by the simultaneous fall for the second month stemming from the range-bound price movement of Bitcoin. It is important to note that since April halving the price of Bitcoin has continued to move in sideways range and maintained the ATH price point from the last Bull Run.

On this account, the spot trading volume on regulated exchanges has decreased by 21.6% or $1.57 trillion. Derivatives have undergone a decline and dropped by 19.4% or around $4 trillion.

However, regardless of the decline the derivatives trades have remained a dominant force since 2023. At the time, investors are looking at the impact generated from the sudden approval of an Ethereum ETF by the Securities and Exchange Commission of the United States.

AI Trading Robot

The approval of Ethereum spot ETFs has led to an increase in Ethereum price in the derivatives section. On this account, Ethereum prices have increased by 50.3% or $14.0 billion.

Approval of Bitcoin and Ethereum ETFs

The overall trading volumes at regulated exchange platforms recorded an all-time high retail market share. For example, ByBit accounted for a total share of 7.36% while a 12.7% decline in spot trading quantity which reached $116 billion.

Meanwhile, Binance has continued to operate as the biggest spot exchange with a 34.6% portion but its overall trading volume also decreased by 19.8% and was recorded at $545 billion. However, the overall outflow from regulated exchanges since Ethereum ETF approval is reported to be around $3 billion.

For the derivatives section, Binance dominance increased by 45.4% which traded at $1.68 trillion for 30-day trading volume. The next in rank in terms of this metric are OKX and Bitget with 21.3% and 14.5% simultaneously.

Meanwhile, the CME exchange also indicated a mixed response with the aggregate trading volume decreasing by 7.42% and concluding at $115 billion whereas Ethereum futures trading gained 37.5% and reported a $20.5 billion profit.

The surge was marked down as the highest since November 2021. At the same time, Ethereum options trading volume recorded a new ATH of $931 million with a 115% increase. The financial analysts have dubbed this incline as a result of increased institutional interest following the approval of Ethereum ETF.

The trading activity in spot markets underwent a visible increase in the aftermath of Ethereum spot ETF approval. Analysts have likened this scenario to the adage of buy the rumor and sell the news.

Coinbase Introduces Smart Wallet with No Fee and Simple Sign-Ups

Coinbase exchange recently introduced a smart wallet. The wallet allows users to make digital asset transactions in a safer, economic, and without any friction. One of the important features of the new service is the reduction of sign-up friction. The wallet has also removed gas fees to allow investors to trade without massive costs.

The smart wallet connects investors with a blockchain without a new application download or recovery phrase. However, it uses security verification methods such as Face ID, biometric logins, Google profiles, Yubikey, and major application verification.

This is a self-custody wallet that integrates with a preexisting Coinbase account and wallet. Coinbase developers are allowed to waive trading fees by sponsored transactions. Users can also access a contemporary web application as a primary interface and enable asset and ID credentials.

In this manner, crypto investors can send, receive, purchase, sell, and swap NFTs and transaction records. This smart wallet service is free for both developers and investors as per a Coinbase blogpost.

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