In May, crypto trading activity fell by 20%, marking the second month of a drop in trading volume across major exchanges, per a CCData‘In May, the combined spot and derivatives trading volume on centralised exchanges fell 20.1% to $5.27tn as the prices of major digital assets continued to trend rangebound following the Bitcoin halving event in March.’The report noted that in the spot market segment, May’s trading volumes across centralized exchanges dropped 21.6% to $1.
Bybit, Bitget, and XT.com also surged in market share over the same period. But Coinbase saw a modest decline while Upbit, OKX, and MEXC Global recorded ‘the greatest decline in market share.’However, money in the crypto market was concentrated mainly in the derivatives market. Per the report,Despite the spike in derivative market dominance, overall trading volumes were subdued like the spot market.
‘Derivatives volumes decreased by 19.4% in May to $3.69tn, recording the second consecutive decline in monthly derivatives volume.’ Unlike the typical sluggish financial activity in TradFi during the summer, the report attributed the low volumes to historical patterns associated with low activity after the Bitcoin halving events.
Amidst the lull, the report noted that traders were still bullish, based on an uptick in funding rates and a surge in‘Across the four exchanges analysed, the average funding rates continued to decline, reaching 3.23%. However, the funding rate started trending upwards on May 23rd as traders turned bullish after the SEC’s surprise pivot on the Spot Ethereum ETF applications.’Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends.
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