- Market trading volume dropped by 44% in April, marking the first decline in seven months.
- Spot and derivatives market volumes crashed to $6.58T from the previous month’s peak of $9T.
- Binance’s market share decreases to 41.5% amid legal issues involving former CEO Changpeng Zhao.
In April, the crypto market saw its trading volume dip for the first time in seven months. CCData, a digital assets data firm, reported that the combined volume across spot and derivatives markets decreased by 43.8% to $6.58 trillion. This figure marked a significant drop from the previous month’s peak of $9.12 trillion.
Furthermore, the data revealed that the crypto derivatives market saw a more pronounced decrease in investor interest last month. In particular, activities in futures and options markets dropped by 47.6% to $4.57 trillion in April. On the other hand, the spot market experienced a smaller decline of 32.6%, ending at $2.01 trillion.
CCData attributed this downturn to a mix of unexpected macroeconomic figures. It noted heightened geopolitical unrest in the Middle East and outflows from U.S. spot bitcoin ETFs. This research report confirms April was overly bearish for the crypto sphere. In the month, Bitcoin crashed to $60K after its first shot at a new all-time high of $73,750 in the previous month.
The U.S. Bitcoin spot ETF market saw diminished inflow amid the bearish trend. Specifically, prominent asset managers like BlackRock recorded at least four consecutive trading days of zero inflow.
Meanwhile, the first day of May marked an even more pronounced dip, with Bitcoin retesting $56,500. However, the asset has since rallied back to $64K last week, sparking renewed interest in the U.S. Bitcoin ETF market.
Furthermore, the report noted that Binance saw its market share in combined spot and derivatives trading drop to 41.5%. The exchange’s spot market volume plunged by 39.2% to $679 billion in April, marking its first downturn since September 2023. However, Binance continues leading in exchange volume.
Notably, the recorded decline in Binance’s market share coincided with the sentencing of its founder and former CEO, Changpeng Zhao, to four months in prison for breaching U.S. anti-money laundering regulations.
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