Originally published on: August 08, 2024
Amid a remarkable turnaround, global cryptocurrency trading volumes on centralized exchanges experienced a 19% surge in July, hitting a whopping $4.94 trillion. This surge in trading activity marks the first increase in volumes in four months.
A recent research report from CCData revealed that spot trading volumes surged by 14.3%, reaching $1.44 trillion, while derivatives trading volumes saw an even more impressive increase of 21%, totaling $3.50 trillion.
Notably, the share of the derivatives market climbed to 70.9%, marking its highest level since December 2023.
Several factors were cited for the surge in trading volume, including the introduction of spot Ether exchange-traded funds (ETFs) in the US and positive sentiments from US political figures expressed at a recent Bitcoin conference in Tennessee.
In the midst of this surge, Bybit emerged as a standout performer in July. The exchange reported a nearly 23% increase in spot trading volume, reaching $132 billion. This figure represents the third-highest monthly volume in Bybit’s history, boosting its market share to a record 9.18%.
Despite Bybit’s impressive performance, Binance maintained its position as the most popular spot exchange, with a market share of 28.1%. However, Binance saw a decline of 4.9% in market share compared to June.
In the derivatives market, Binance continued its dominance with a 43.5% market share, followed by OKX at 19% and Bybit at 15.1%.
Analysts at CCData also observed a significant spike in volatility in early August, leading to the second-highest daily spot trading volume since May 2021. This heightened trading activity harkened back to the market disruption caused byChina’s ban on Bitcoin mining last year.
The recent surge in trading volumes underscores the cryptocurrency market’s sensitivity to regulatory and macroeconomic factors, as well as its ability for rapid recovery and growth.
Furthermore, in July, the CME exchange saw its trading volume increase by 23.7% to $130 billion, along with a record $3.69 billion in options trading. This growth was largely driven by institutional interest in Ethereum ahead of the US spot ETFs launch on July 23.
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