Volume Drop
In May 2024, trading volume on centralized crypto exchanges fell significantly to $5.27 trillion, a 20.1% decrease from April. This decline affected both spot and derivatives markets, with spot trading dropping by 21.6% and derivatives by 19.4%.
Institutional Interest
Despite the overall decline, derivatives trading gained market share due to the SEC’s approval of spot Ethereum ETFs. This boosted Ethereum derivative open interest by 50.3% to $14.0 billion.
Market Presence
Bybit surged to a record high in spot market share, while Binance maintained its lead. In the derivatives sector, Binance also increased its dominance, while CME showed mixed results.
Regulatory Impact
The SEC’s approval of spot Ethereum ETFs led to a temporary increase in trading activity. However, recent reports suggest that such regulatory approvals often lead to speculative trading, followed by outflows from exchanges.
Bullish Sentiment
On-chain data shows significant Bitcoin outflows from exchanges like Coinbase and Kraken, indicating that investors are moving their assets to long-term storage. This suggests a bullish sentiment and confidence in the future value of cryptocurrencies.
