Centralized crypto exchanges have experienced a significant drop in trading volumes, reaching their lowest levels in over four years. This is due to increased regulatory pressure from US regulators and lawmakers. The combined spot and derivatives trading volume fell by 15.7% in May, marking the second consecutive month of dwindling crypto trading activity.
Binance was hit the hardest, losing market share for the third consecutive month, which can be attributed to the removal of zero-fee trading for USDT pairs and increased scrutiny from regulators in the US. However, the derivatives market on centralized exchanges now represents 79.5% of the entire crypto market, a 1.2% increase from April.
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