CEX Trading Volumes Have Gone Down To 4 Year Lows

CEX Trading Volumes

It has been reported that the trading volumes on quite a few centralized exchanges have gone down to their lowest Trading Volumes in around four years. This has been the result of mounting regulatory pressure from regulators and lawmakers in the United States.

According to a report made on 7th June from crypto analytics firm CCData, the combined spot and derivatives trading volume in May fell by 15.7% from the previous month, which marked the second consecutive month of dwindling crypto trading activity. As the data is only current to the end of May, it will not take into account any of the potential impact from the recent lawsuits by the SEC against Binance or Coinbase. 

CEX Trading Volumes Have Already Started Deteriorating

CCData shows that of all the major firms that went through a major decline in their trading volumes, Binance was hit the hardest. In May, the company gave up a lot more of its total market share, as it fell by just 43% overall, down from a peak of 57% in February. This marked the third ever consecutive month that the total market share of Binance had declined. The report claimed that the bulk of the decline could be attributed to Binance removing zero-fee trading for USDT pairs but also noted that the exchange was no doubt feeling the squeeze of increased scrutiny from the many regulators in the country. 

On the 5th of June, the SEC managed to sue Binance, and its CEO, Changpeng Zhao, for failing to register as a securities exchange and for offering unregistered securities. Within 24 hours, the total net outflows from Binance had topped $778 million, although the company had assured the public that their assets had remained safe. In the next 48 hours, the median trading volume across the top three decentralized exchanges had jumped by 444%.