Crypto exchange trading volume decreases in April as Bitcoin drops from its all-time high

The trading volume on major cryptocurrency exchanges has seen a significant decline in April as Bitcoin retreated from its all-time high. Spot trading volume on centralized exchanges like Coinbase Global, Binance, and Kraken dropped by 32.6% to $2 trillion last month, while derivatives trading volume fell by 26.1% to $4.57 trillion. This decline in trading volume can be attributed to the tightening of financial conditions in the United States, following the Federal Reserve’s efforts to address persistent inflation challenges.

The anticipation and excitement leading up to the April 19 Bitcoin halving event also contributed to the surge in trading volume earlier in the year. However, the release of higher-than-expected Consumer Price Index (CPI) inflation data and escalating geopolitical tensions in the Middle East injected uncertainty and fear into the market, leading to negative net flows from spot Bitcoin ETFs and major crypto assets reaching their range lows.

The decline in trading volumes also impacted the market share of Binance, the world’s largest crypto exchange, which saw its spot market share drop by almost 4% to 33.8%, its lowest level since January. Similarly, the CME Group, a leading derivatives marketplace, experienced a decline in crypto trading volume for the first time in seven months, with its derivatives trading volume decreasing by nearly 20% to $124 billion in April.

Despite the decline in trading volumes, trading activity on centralized exchanges remains at an elevated level compared to previous months, according to Jacob Joseph, a research analyst at CCData. Centralized cryptocurrency exchanges (CEXs) like Binance witnessed a significant increase in trading volumes between October 2023 and March 2024. OKX saw a 278% increase in 30-day volumes, followed by Binance with a 239% surge, and Bybit with a 264% growth, outpacing the industry’s average growth rate of 255%. Coinbase also saw growth with a 193% increase in trading volume, trailing behind the rapid expansion of decentralized exchanges (DEXs) like Uniswap v3, which saw a 320% increase in volumes during the same period, surpassing $2 trillion in lifetime trading volume.