Augustturned out to be an unfavorable month not only for the prices of majorcryptocurrencies but also for the performance of the largest exchanges.According to data collected by Finance Magnates Intelligencethe topten platforms in terms of spot volumes recorded their worst month in nearlythree years. Total volumes fell to $359.59 billion, losing 13% monthly and astaggering 50% year-over-year (YoY).
Sharp Decline in SpotVolumes among Major Cryptocurrency Exchanges
The totalmonthly trading volume of the top ten cryptocurrency exchanges, measured bymonthly turnover fell to just under $360 billion. This represents a decline of 13% compared to the $413 billion reported in July 2023 and a drop of 50% compared to last year’s period ($715 billion in August 2022).
Notably, thiswas the lowest result for leading exchanges like Binance, Upbit, Hobi, andCoinbase since October 2020, nearly three years ago. For context, theseexchanges reached a record volume of $3.7 trillion in May 2021. The August 2023figure is thus more than ten times worse.
From amarket share perspective, Binance continues to dominate, holding 53% of thetotal volumes reported by the top ten cryptocurrency exchanges in August. Upbitand Huobi were nearly tied for second place, each with a market share of 9%. Thenext positions were held by Coinbase and OKX, each with a 7% market share.Despite regulatory issues in various parts of the world, these exchanges lagfar behind Binance.
Huobi Sees SignificantGains While Upbit Faces Steep Losses
Analyzingthe performance of various cryptocurrency exchanges, Huobi stands out as theonly one reporting a significant month-over-month increase in spot tradingvolumes. The value rose 48% compared to July 2023, reaching $31.36 billion.On the other end of the spectrum, Upbit saw its volumes shrink 48%month-over-month (MoM), dropping from $60.91 billion reported in July to $31.8billion in August.
Thefluctuations in trading volumes for individual exchanges have been summarizedin a chart, with detailed information provided below:
- Huobi:Monthly volumes increased 48% and yearly 36% to $31.36 billion
- Bitfinex:Monthly volumes increased 4% and yearly decreased 70% to $3.07 billion
- ByBit:Monthly volumes increased 3% and yearly 160% to $23.25 billion
- Binance:Monthly volumes decreased 8% and yearly 57% to $192.12 billion
- Coinbase:Monthly volumes decreased 9% and yearly 55% to $29.59 billion
- Bitstamp:Monthly volumes decreased 11% as well as yearly by 11% to $3.92 billion
- Kraken:Monthly volumes decreased 16% as well as yearly by 16% to $13.76 billion
- OK:Monthly volumes decreased 16% and yearly 56% to $23.63 billion
- KuCoin:Monthly volumes decreased 41% and yearly 65% to $10.09 billion
- Upbit:Monthly volumes decreased 48% and yearly 53% to $31.8 billion
What Caused the Decline inCryptocurrency Market Volumes?
Severalfactors could be responsible for such drastic declines in spot trading volumesin the crypto market and testing lows from October 2020. One of them isundoubtedly the poor performance of Bitcoin and key altcoins in August. BTClost over 11%, falling for the second consecutive month and losing the most ona monthly basis since November 2022. Ethereum (ETH) declined in a similarrange, reaching the highest monthly decline rate in nine months.
Additionally,summer months are generally not the most active for cryptocurrencies andtraditional markets. A July report from Robinhood, for example, showed adecrease of 38% in total trading volumes in the digital asset market.
Fallingvolumes signal that investors’ risk appetite is much lower than just a fewmonths ago. Data from analytics firm Glassnode show that in 2023, investoractivity in spot and derivative markets fell to the lowest levels in two years.
Theindustry is certainly not helped by regulatory uncertainty. Lawsuits from the USSEC against Coinbase and Binance, increasing problems for the latter in findinga place in Europeand tightening cryptocurrency regulations have reducedinterest in the sector. This applies to both retail and institutionalcustomers.
Althoughthe June wave of applications to create Bitcoin ETFs momentarily raisedinvestors’ hopes for a market revival, optimism quickly faded. The SEC once again delayed its decision on approving such regulatedinstruments.
Worsestill, September may not bring a reversal of these negative trends. InBitcoin’s history so far, September has been one of its worst months, in whichBTC lost an average of 1.8%. Increases usually appear in October and November,and we can only witness a rebound in spot volumes for that period.
Augustturned out to be an unfavorable month not only for the prices of majorcryptocurrencies but also for the performance of the largest exchanges.According to data collected by Finance Magnates Intelligencethe topten platforms in terms of spot volumes recorded their worst month in nearlythree years. Total volumes fell to $359.59 billion, losing 13% monthly and astaggering 50% year-over-year (YoY).
Sharp Decline in SpotVolumes among Major Cryptocurrency Exchanges
The totalmonthly trading volume of the top ten cryptocurrency exchanges, measured bymonthly turnover fell to just under $360 billion. This represents a decline of 13% compared to the $413 billion reported in July 2023 and a drop of 50% compared to last year’s period ($715 billion in August 2022).
Notably, thiswas the lowest result for leading exchanges like Binance, Upbit, Hobi, andCoinbase since October 2020, nearly three years ago. For context, theseexchanges reached a record volume of $3.7 trillion in May 2021. The August 2023figure is thus more than ten times worse.
From amarket share perspective, Binance continues to dominate, holding 53% of thetotal volumes reported by the top ten cryptocurrency exchanges in August. Upbitand Huobi were nearly tied for second place, each with a market share of 9%. Thenext positions were held by Coinbase and OKX, each with a 7% market share.Despite regulatory issues in various parts of the world, these exchanges lagfar behind Binance.
Huobi Sees SignificantGains While Upbit Faces Steep Losses
Analyzingthe performance of various cryptocurrency exchanges, Huobi stands out as theonly one reporting a significant month-over-month increase in spot tradingvolumes. The value rose 48% compared to July 2023, reaching $31.36 billion.On the other end of the spectrum, Upbit saw its volumes shrink 48%month-over-month (MoM), dropping from $60.91 billion reported in July to $31.8billion in August.
Thefluctuations in trading volumes for individual exchanges have been summarizedin a chart, with detailed information provided below:
- Huobi:Monthly volumes increased 48% and yearly 36% to $31.36 billion
- Bitfinex:Monthly volumes increased 4% and yearly decreased 70% to $3.07 billion
- ByBit:Monthly volumes increased 3% and yearly 160% to $23.25 billion
- Binance:Monthly volumes decreased 8% and yearly 57% to $192.12 billion
- Coinbase:Monthly volumes decreased 9% and yearly 55% to $29.59 billion
- Bitstamp:Monthly volumes decreased 11% as well as yearly by 11% to $3.92 billion
- Kraken:Monthly volumes decreased 16% as well as yearly by 16% to $13.76 billion
- OK:Monthly volumes decreased 16% and yearly 56% to $23.63 billion
- KuCoin:Monthly volumes decreased 41% and yearly 65% to $10.09 billion
- Upbit:Monthly volumes decreased 48% and yearly 53% to $31.8 billion
What Caused the Decline inCryptocurrency Market Volumes?
Severalfactors could be responsible for such drastic declines in spot trading volumesin the crypto market and testing lows from October 2020. One of them isundoubtedly the poor performance of Bitcoin and key altcoins in August. BTClost over 11%, falling for the second consecutive month and losing the most ona monthly basis since November 2022. Ethereum (ETH) declined in a similarrange, reaching the highest monthly decline rate in nine months.
Additionally,summer months are generally not the most active for cryptocurrencies andtraditional markets. A July report from Robinhood, for example, showed adecrease of 38% in total trading volumes in the digital asset market.
Fallingvolumes signal that investors’ risk appetite is much lower than just a fewmonths ago. Data from analytics firm Glassnode show that in 2023, investoractivity in spot and derivative markets fell to the lowest levels in two years.
Theindustry is certainly not helped by regulatory uncertainty. Lawsuits from the USSEC against Coinbase and Binance, increasing problems for the latter in findinga place in Europeand tightening cryptocurrency regulations have reducedinterest in the sector. This applies to both retail and institutionalcustomers.
Althoughthe June wave of applications to create Bitcoin ETFs momentarily raisedinvestors’ hopes for a market revival, optimism quickly faded. The SEC once again delayed its decision on approving such regulatedinstruments.
Worsestill, September may not bring a reversal of these negative trends. InBitcoin’s history so far, September has been one of its worst months, in whichBTC lost an average of 1.8%. Increases usually appear in October and November,and we can only witness a rebound in spot volumes for that period.
