In June, centralized exchanges (CEXs) experienced a significant increase in trading volume, reaching $2.71 trillion, representing a 14.2% climb, according to CCData’s monthly exchange report. This surge follows a period of market volatility triggered by the Securities and Exchange Commission’s (SEC) lawsuits against major crypto exchanges Binance and Coinbase. Additionally, positive sentiment was bolstered by BlackRock’s filing for a spot Bitcoin exchange-traded fund (ETF).
The rise in trading volume, marking the first increase in three months, was driven by various factors. Binance, Binance.US, and Coinbase observed a decline in their market shares during this period. Binance, in particular, witnessed a notable decrease due to increased withdrawals following the SEC’s lawsuit on June 5. Consequently, its market share dropped by 1.40% to 41.6%. Binance.US experienced a marginal decline of 0.86% to 0.36%, while Coinbase’s market share declined the least among major exchanges, sliding by 0.08% to 5.36%.
While the SEC lawsuits caused volatility across markets, the filing of a spot Bitcoin ETF by BlackRock reportedly improved investor sentiment. Spot trading activity surged by 16.4% to $575 billion in June. Despite this growth, spot trading volumes on CEXs remain historically low, with the second quarter of 2023 reflecting the lowest quarterly volumes since 2019.
Derivatives trading volume also saw an upturn, rising by 13.7% to $2.13 trillion—the first increase in three months. Binance emerged as the leading venue for derivatives crypto trading, with a volume exceeding $1.21 trillion in June. OKX exchange followed with $416 billion, representing a 44.9% increase in activity.
Notably, Bitcoin futures volume spiked on the CME exchange, reaching $37.9 billion—an increase of 28.6%, the highest volume traded on the derivatives exchange since November 2021. Ether (ETH) futures trading volume grew to $8.91 billion, indicating a 9.93% increase during the month.
The report also points out that the surge in BTC futures volume highlights heightened trading activity by institutional entities speculating over the SEC’s decision on multiple spot Bitcoin ETF filings.
Overall, the increased trading volume in June reflects the impact of regulatory actions against crypto exchanges and the positive sentiment driven by BlackRock’s ETF filing. However, despite these fluctuations, spot trading volumes remain relatively low compared to previous years, while derivatives trading volume experienced a notable boost.