Crypto Monthly Trading Volume Drops for First Time in Seven Months to $6.58T

The world of cryptocurrencies experienced a major setback in April as Bitcoin, the leading digital currency by market value, saw a significant drop of nearly 15%. This snapped the end of a seven-month winning streak for Bitcoin, which had lay on a bull run for quite some time.

Bitcoin’s decline in value is due to several factors, including unexpected macroeconomic data, escalating tensions in the Middle East, and negative net flows from US spot Bitcoin ETFs.

Why is Trading Volume Low?

Moreover, cryptocurrency trading volume also took a hit in April, registering the first decline in seven months. According to a report by London-based digital assets data provider CCData, the cumulative volume in spot and derivatives markets fell by 43.8%, amounting to $6.58 trillion.

This was a sharp retracement from March’s record high of $9.12 trillion. The report also noted that derivatives fell out of investor favor again as activity in the futures and options market declined by 47.6% to $4.57 trillion.

However, facts remain that holding cryptocurrencies can lead to a sudden wealth boom for traders, this knowledge drives many to stay positive of market changes.

Major US-listed spot ETF Influence

Meanwhile, the spot market volume suffered a relatively measured drop of 32.6% to $2.01 trillion. The decline in cryptocurrency trading volume was due to escalating geopolitical tensions and slower inflows into US-listed spot ETFs.

This led to major crypto assets retracing the gains they made in March. CoinDesk 20 Index, a measure of the most liquid digital assets, traded nearly 20%, and the total crypto market capitalization slipped by 16.8% to $2.177 trillion.

In addition, Binance, the largest crypto exchange by volume, saw a decline in its combined spot and derivatives market share, which fell to 41.5%. This was due to the exchange’s spot market trading volume tanking 39.2% to $679 billion in April, recording the first decline since September 2023.

CCData reports the decline in Binance’s market share also coincided with the news that its founder and previous CEO, Changpeng Zhao, was sentenced to four months in prison for violating US money laundering laws. Zhao stepped down after pleading guilty to US criminal charges in November and Richard Teng became the new chairman. Since then, Binance’s spot market share has increased from 30.8% to 33.8%, according to the CCData report.