Centralized crypto exchanges (CEX) experienced a decline in trading volumes for the first time in three months in April 2023, according to blockchain analytics provider Kaiko.
Trading volumes dropped to just over $500 billion, which is almost half the volumes recorded in March 2023, making it the lowest trading volume month in 2023 so far. However, Kaiko reports that trade volumes are still higher than in 2020 despite the April decline.
Trade volumes on #CEXs declined in April after rising for three consecutive months and surpassing pre-FTX levels in March.
Overall, however, the crypto market remains significantly larger than it was before the 2020 bull run.#crypto #TradeVolume #liquidity #CEX pic.twitter.com/cmftFD3Qya
— Kaiko (@KaikoData) May 3, 2023
Binance continues to lead the market with a 71.6% dominance, according to data from blockchain analytics company The Block. CoinGecko also reported that Binance’s 24-hour trading volume is approximately $10 billion, which is significantly higher than Coinbase’s volume of $1.1 billion. In addition, Binance gained over 50,000 BTC, worth almost $1.5 billion, in its Bitcoin balance on a month-over-month basis before the sell-off when BTC encountered significant resistance just over the $30,000 mark.
However, legal spot activity on centralized exchanges decreased by 43.8% to $400.5 billion in April, largely due to Binance’s reintroduction of fees on BTC pairs. Furthermore, Coinbase has observed a drop in app downloads due to decreasing trading volumes in the sideways market, according to Fortune.com.
Cryptocurrency markets have grown by 50% since the beginning of the year but have mainly traded in a range for the past six weeks. On April 16, the digital asset markets reached their 2023 highs of $1.34 trillion, coinciding with the decline in CEX volumes. Since then, the market’s volumes have declined by 7.5% and now stand at $1.24 trillion. Analysts predict that the decline is likely to continue, given the volatile market conditions throughout the first quarter.
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