Binance, the world’s largest cryptocurrency exchange, has reported a 48% decrease in spot trading volume for the second month in a row, according to CCData research firm.
What Happened: The report revealed that Binance’s trading volume fell to $287 billion in April, the second-lowest this year.
After failing to break key resistance levels, the price of major crypto assets, such as Bitcoin BTC/USD and Ethereum ETH/USD, remained largely range-bound over the course of the past month.
Furthermore, the exchange’s market share also declined for the second consecutive month, dropping to 46%.
According to CCData, the crypto market has reached an all-time high in speculation, with derivatives trading accounting for a record-breaking 77.6% of all trading on the market.
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Why It Matters: However, Binance’s decline in trading volume is not unique, as CCData found that centralized exchanges overall reported a 40% decrease in spot trading volume, the lowest level recorded since December 2020.
CCData attributes the drop in transaction levels to the uncertainty surrounding "macroeconomic conditions including looming recession threats and a possible pause on Fed rate hikes amidst the turmoil in the banking sector, which has contributed to the declining volumes this month."
Despite the dip in trading volume, Binance continues to hold its position as the largest exchange, with its two nearest competitors, Coinbase COIN and OKX, holding only 5.60% and 5.39%, respectively, of the total spot trading volume.
Price Action: At the time of writing, BTC was trading at $$27,548.99, down 0.02% in the last 24 hours, according to Benzinga Pro.
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