Key Points
- Cryptocurrency trading volume fell to $6.58T in April, ending a seven-month streak of increases.
- Despite regulatory issues, Binance remains the largest crypto exchange by volume, although its market share dropped to 41.5%.
The total volume of cryptocurrency trading saw a significant drop in April, marking the end of a seven-month streak of growth. This decline is likely due to a number of factors, including decreased inflows recorded among spot Bitcoin exchange-traded funds (ETFs) in the US market and increasing geopolitical tensions.
Drop in Crypto Trading Volume
A report from London-based crypto data provider CCData revealed that the cumulative volume of trades in the spot and derivatives markets fell to $6.58 trillion, a 43.8% drop. This is a significant decrease from the record $9.12 trillion recorded in March.
The report also indicated that the value of Bitcoin (BTC), the largest cryptocurrency by market cap, fell by approximately 15% last month to less than $60,000. This decline was attributed to unexpected macroeconomic data, an escalation in the geopolitical crisis in the Middle East, and negative net flows from US spot Bitcoin ETFs.
Binance’s Market Position
Despite regulatory issues in multiple jurisdictions, Binance remains the largest crypto exchange by volume. However, its combined share of the spot and derivatives market fell to 41.5%. Binance’s spot market trading volume in April was $679 billion, a 39.2% decline. This is the company’s first crash since September 2023. The fall in Binance’s market share could also be attributed to the legal issues faced by its founder and former CEO Changpeng Zhao.
The crypto market has been experiencing instability, particularly following Bitcoin’s halving last month. Recently, Bitcoin rose above $65,000 following aggressive accumulation indicated by a Doji candlestick. However, despite a 5.5% increase over the last 7 days, Bitcoin is currently trading just above $61,000.
Ethereum’s Price Drop
Ethereum (ETH) has also experienced a price drop. The second-largest cryptocurrency by market cap saw a reduction to $2,975 as large investors began to sell off ETH for other altcoins. This lack of confidence in ETH is likely due to the uncertainty surrounding the United States Securities and Exchange Commission’s (SEC) reluctance to approve spot ETH ETFs. Crypto asset manager Grayscale Investments recently withdrew its application for an ETH futures ETF.
