Binance’s Spot Trading Volume Drops to Second-Lowest Since 2021 as Crypto Market Cools Down

Leading cryptocurrency exchange Binance saw a 48% fall in its spot trading volume last month, marking the platform’s second straight month of declines.

The second-lowest monthly trading volume for Binance since 2021 was $287 billion, according to the most recent Exchange Review report from CCData. Its market share has also continued to decline, dropping to 46.3% for the second consecutive month, the lowest level since October 2022, just before FTX’s demise.

Despite this, Binance continues to rule the market, far outpacing its rivals. The second and third largest exchanges by spot volume, Coinbase and OKX, respectively only control 5.60% and 5.39% of the overall spot trading market share, lagging significantly behind Binance.

Following Binance’s example, the BTC/TUSD trading pair has seen a significant increase since it began offering zero-fee trading to its consumers on March 22. The volumes increased by an astounding 851% in April, reaching a record high of $34 billion. By trading volume on controlled exchanges, TUSD also advanced to third place among stablecoins, topping USDC for the first time in almost a year.

In a downturn that marked the lowest trading volumes since December 2022 and the second-lowest since July 2020, cryptocurrency spot trading volumes on centralized exchanges fell 40.2% to $621 billion in a month, according to CCData’s report, effectively defying the year’s trend in trading activity. Binance’s volume decreased during this period.

Derivatives volumes fell by 23.3% to $2.15 trillion, according to the research, despite the fact that they set a new high for market share in the same month.

This month’s volume decline can be attributed to the macroeconomic environment, which is unsteady and may result in risks of a recession and a suspension of Fed rate increases due to the instability in the banking industry.