Global cryptocurrency exchange Binance saw a sharp decline in trading activity in September. A report from CCData shows that Binance’s derivatives trading volume fell by 21%, down to $1.25 trillion. This is the lowest level since October 2023. By the end of the month, Binance’s market share in the derivatives market dropped to 40.7%, the lowest since September 2020.
Spot trading on Binance also suffered, with a 22.9% drop in volume, reaching $344 billion. This marked the lowest spot trading volume since November 2023, reducing Binance’s market share in spot trading to 27%, the lowest since January 2021. Overall, combining spot and derivatives, Binance’s total market share fell to 36.6%, the lowest since September 2020.
Despite this decline, Binance still leads the global spot trading market among centralized exchanges.
Crypto.com Gains Ground
In contrast, Crypto.com experienced growth, with spot and derivatives trading volumes increasing by 40.2% and 42.8%, respectively. Crypto.com’s total trading volume in September reached $134 billion for spot and $149 billion for derivatives, giving it a combined market share of 11%. This makes Crypto.com the fourth-largest exchange by volume.
Industry-Wide Slowdown
Overall, trading activity across centralized exchanges dropped by 17%, with total spot and derivatives trading volumes reaching $4.34 trillion in September — the lowest since June. CCData noted that this decline aligns with seasonal trends, where trading activity usually dips during the late summer months.
Outlook for the Future
Analysts expect trading volumes to pick up in the coming months, especially with the U.S. Federal Reserve likely to reduce interest rates. This is expected to increase liquidity and drive more investments into cryptocurrencies. The report suggests that rate cuts could mark the beginning of the next growth phase in the crypto market.
Summary Review: Binance experienced a significant drop in both spot and derivatives trading in September, bringing its market share down to levels not seen since 2020. Despite this, Binance remains a leader in the global crypto market. Meanwhile, exchanges like Crypto.com are gaining momentum. Looking ahead, analysts expect trading volumes to recover as the U.S. Federal Reserve’s anticipated rate cuts could bring more liquidity and renewed interest in cryptocurrencies.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
