[NEWS] Binance trading volume falls 20% to lowest level in 4 years

Something strange is happening at Binance, which has maintained its position as the world's largest cryptocurrency exchange since its founding. In September, Binance's trading volume fell 20% month-on-month. Meanwhile, competitors such as Crypto.com saw a 40% increase in trading volume.

According to the latest CCData report, Binance's derivatives trading volume fell 21% in September to $1.25 trillion (approximately 182.5 trillion yen), the lowest level since October 2023.

This decline caused Binance's share of the derivatives market to fall to 40.7%, the lowest level since September 2020.

Spot trading has also fallen significantly. It fell 22.9% to $344 billion (approximately 50.2 trillion yen), the lowest level since November 2023. This caused Binance’s spot market share to plummet to 27%, its lowest since January 2021.

Binance’s combined spot and derivatives market share fell to 36.6%, its lowest since September 2020.

Despite this drop in trading volume, Binance remains the top platform by spot trading volume among centralized exchanges.

Meanwhile, Crypto.com has seen impressive growth among centralized exchanges.

Spot and derivatives trading volumes grew 40.2% and 42.8%, respectively, in September to $134 billion and $149 billion.

With a combined market share of 11% in September, Crypto.com became the fourth-largest exchange by trading volume. As cryptocurrency exchanges become more competitive, the rapid growth of newcomers like Crypto.com is becoming more apparent.

But despite Crypto.com’s rapid growth, overall trading volume on centralized exchanges has declined along with the decline of Binance.

Total trading volume, including spot and derivatives, fell 17% to $4.34 trillion, the lowest monthly volume since June.

Trading volume slows as summer comes to an end

CCData noted that the decline is in line with the seasonal trend of trading volume slowing towards the end of summer.

Spot trading volume fell 17.2% to $1.27 trillion, while derivatives trading fell 16.9% to $3.7 trillion.

Analysts believe that the Fed's expansion of interest rate cuts could improve liquidity and lead to more funds flowing into crypto assets. They expect trading volume to be higher in the coming months.

Last month, the SEC filed an amended complaint against Binance, investigating the exchange's token listings. This follows a complaint filed in June last year alleging that Binance acted as an unregistered broker, clearing house and trading platform, and offered unregistered securities.

To resolve these issues, Binance paid $4.3 billion in fines to multiple U.S. regulators and its CEO, CZ (Changpeng Zhao), resigned. These incidents may have also contributed to the decline in trading volume on the platform.

Reference: CCData
Image:CCData、Shutterstock

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