The Surge in token Volume on crypto Exchanges
Centralized cryptocurrency exchanges recorded a significant rise in token trading volume for the second month in a row. According to CCData's latest report, the total spot and derivatives trading volumes increased by 5.38%, totaling $5.22 trillion in August.
Spot Trading Sees a 7% Surge
The report highlights a substantial 7.06% surge in spot trading on centralized exchanges, reaching $1.54 trillion, the highest level since May. Derivatives trading volumes also followed suit, with a 4.70% increase to $3.68 trillion, also the highest level since May. However, the report notes that the downturn in prices during August triggered a series of liquidations.
Notable Performances by crypto Exchanges
crypto.com emerged as a standout performer during this period, with a remarkable increase in market share. The platform's spot trading volume surged by over 38% to $95.6 billion, marking its highest level since 2022. Additionally, its derivatives trading volume reached a record high of $104 billion. Coinbase International also reported strong gains, with a 106% jump in derivatives trading volume to $58.2 billion.
In contrast, derivatives trading on the Chicago Mercantile Exchange (CME) experienced a slight decline of 1.16%. Specifically, ETH futures and options trading volumes plummeted by 28.7% and 37%, respectively, signaling a reduced interest in ethereum from institutional investors. On the other hand, CME's BTC futures volumes rose by 3.74% to $104 billion, while BTC options trading decreased by 13.4%, reaching $2.42 billion.
Challenges Faced by crypto ETFs
Despite the positive performance of crypto exchanges, crypto funds globally continue to encounter challenges. In the U.S., spot bitcoin ETFs saw six consecutive days of net outflows, with $37.29 million exiting the products on a single day. Leading spot bitcoin ETF, Grayscale's GBTC, witnessed the largest outflows at $34.25 million, while Fidelity's FBTC and VanEck's HODL also experienced significant withdrawals.
Similarly, U.S. ethereum ETFs faced outflows as well. The Grayscale ethereum Trust (ETHE) recorded net outflows of $40.63 million on a single day, while the Grayscale ethereum Mini Trust (ETH) reported inflows of $3.12 million. The trading volume across the nine ethereum ETFs declined to $145.86 million from $163.5 million the day before.
Overall, digital asset investment products encountered substantial outflows last week, totaling $305 million. This trend reflects a broader negative sentiment prevailing in the cryptocurrency market globally. The primary driver behind this downturn seems to be stronger-than-expected economic data from the United States, reducing the likelihood of a 50-basis point interest rate cut by the Federal Reserve.
Despite the outflows in the bitcoin market, short bitcoin investment products, which benefit from declines in bitcoin's price, witnessed their second consecutive week of inflows, totaling $4.4 million.
