Crypto spot trading volumes drop to 2021 low in July

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Although July was a positive month for the cryptocurrency market, spot trading volumes fell 31.5% sequentially to $ 1.9 trillion, the lowest level recorded this year, according to a report from the CryptoCompare data provider.

However, the major cryptocurrencies, bitcoin and ethereum, rose 18.3% and 11.2% month-over-month, respectively, over the month. China’s continued crackdown on bitcoin mining has wreaked havoc on the market, with prices for the world’s largest cryptocurrencies falling 6% and spot volumes collapsing 42.7% in June.

The decline in crypto trading in July could be attributed to regulatory concerns about different aspects of the cryptocurrency market. Exchanges, such as Binance, have come under increased scrutiny from regulators around the world. Likewise, stablecoins have been criticized by regulators regarding potential risks to consumers and the global financial system, ”CryptoCompare said in a statement.

In July, derivatives trading gained market share in the spot market despite lower volumes. Derivatives volumes accounted for 56.9% of total volumes in the cryptocurrency market, the highest level since November 2020, when derivatives volumes held a 59.2% share. This was after a 22.6% drop in derivatives volume in July to $ 2.5 trillion. Spot volumes fell further, dropping 31.5% month-on-month to $ 1.9 trillion, the lowest spot volumes recorded so far this year, “the report added.

Binance was the largest leading cash exchange by volume, trading at $ 455 billion (down 31.9%) in July. It was followed by OKEx at $ 96.8 billion (down 31.4%) and Huobi Global at $ 92.7 billion (down 42.7%). BeQuant, Coinbase and FTX were at $ 72.1 billion (down 6.5%), $ 5.38 billion (down 30.5%) and $ 35.2 billion (down 12 , 2%), respectively.

CryptoCompare said derivatives volumes fell 22.6% in July to $ 2.5 trillion. The derivatives market now accounts for 56.9% of the total crypto market, up from 52.9% in June.

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