- July witnessed a 19% surge in global crypto trading volume on centralized exchanges, totaling $4.94 trillion, marking the first rise in four months, as confirmed by CCData.
- The uptick is attributed to the introduction of spot Ethereum exchange-traded funds in the U.S. and favorable sentiments from political figures at the Bitcoin conference in Nashville, Texas.
- Spot trading volumes saw a 14.3% increase to $1.44 trillion, while derivatives trading volumes rose by 21% to $3.50 trillion, according to CCData, with the derivatives share hitting a remarkable 70.9%.
July’s 19% rise in global crypto trading volume on centralized exchanges sparks new enthusiasm. Check out the factors behind this significant uptrend!
Crypto Trading Volume Surge in July
The month of July marked a significant turnaround in the crypto market with a 19% increase in trading volumes on centralized exchanges, as reported by CCData. This resurgence, reaching $4.94 trillion, ends a four-month slump, giving new hope to investors and traders alike.
Drivers Behind the Increase
CCData attributed this positive development to the launch of spot Ethereum exchange-traded funds in the United States, along with optimistic sentiments driven by influential political figures at the Bitcoin conference in Nashville, Texas. This confluence of factors ignited both spot and derivatives trading activities, resulting in a 14.3% increase in spot trading volumes amounting to $1.44 trillion. The derivatives segment outpaced the spot market with a 21% growth to $3.50 trillion, pushing its share to an impressive 70.9%, the highest since December 2023.
Bybit and Binance: Market Dynamics
July was particularly notable for Bybit, whose spot trading volume surged by nearly 23% to $132 billion, the third-highest monthly volume ever recorded on the platform. This surge propelled Bybit to capture a record market share of 9.18%, solidifying its position as the second-largest spot exchange.
Continued Leadership by Binance
Despite Bybit’s stellar performance, Binance maintained its lead as the largest spot exchange with a 28.1% market share, though it experienced a 4.9% decline from the previous month. Notably, early August saw increased volatility, leading to the highest daily spot trading volume since May 2021. This spike occurred in the backdrop of China’s Bitcoin mining crackdown, which had a profound impact on global markets.
Performance of Derivatives Exchanges
In the derivatives market, Binance continued to lead with a 43.5% market share, while OKX and Bybit followed with 19% and 15.1%, respectively. Coinbase International and Crypto.com showed remarkable month-on-month growth, with their volumes increasing by 181% to $28.3 billion and 102% to $75.6 billion, respectively.
Significant Market Share Movements
Significant shifts were observed in market share among leading exchanges. Bybit and Crypto.com emerged as the primary gainers, with increases of 1.16% and 0.87%, respectively. Conversely, Binance and Kraken experienced the largest declines, with Binance dropping by 3.24% and Kraken by 0.09%.
Conclusion
July’s resurgence in crypto trading volumes on centralized exchanges underscores the dynamic nature of the crypto market. With strategic developments like the introduction of spot Ethereum ETFs and supportive political sentiments, the market has shown a robust recovery. As Bybit and Binance continue to jockey for market leadership, the evolving trading landscape promises further growth and opportunities.
