In April, while trading volumes dipped across major exchanges, Binance, the largest centralized exchange (CEX), witnessed a significant uptick in futures trading volumes, soaring by over 72% compared to March.
According to analysis by the Wu Blockchain team, this surge in trading activity on Binance can be attributed to the introduction of a time-limited fee discount for USDC perpetual contracts. This move sparked increased trading volumes for perpetual contracts on the platform.
However, when excluding this factor, the overall trading volume across all exchanges saw a decline of 26.6% in April compared to the previous month. Among the top three exchanges with the largest drops in futures trading volumes were Bitget, down by 16.1%, followed by Bitmex at 15.6%, and HTX with a 13.4% decrease.
Spot trading volume experienced an even steeper decline, plunging by nearly 38% month-on-month. Gate was the sole exchange to witness an increase in activity, rising by 13.7%. Conversely, Kucoin saw a significant drop of 70.8%, followed by Upbit with a 57.5% decline, and Bitfinex with a 47.7% decrease.
In early April, Binance Futures launched a promotional campaign offering trading fee discounts for all USDC-margined perpetual contracts. During this period, all Binance users enjoyed reduced fees when trading such contracts.
The promotion coincided with the news of Binance founder Changpeng Zhao’s legal issues, where he was sentenced to four months in prison for violating the Bank Secrecy Act, resulting in a $4.4 billion fine for the exchange.
Zhao reached a plea deal with the investigation, resigning as CEO of Binance and agreeing to pay a $50 million fine. Despite these challenges, Binance’s trading volumes surged, reflecting the platform’s resilience in the face of market fluctuations.
Summary Review: Despite a general downturn in trading volumes across the cryptocurrency market in April, Binance notably stood out with a remarkable 72% increase in futures trading volumes. This surge was largely attributed to the introduction of a time-limited fee discount for USDC perpetual contracts. However, when excluding this promotional activity, overall trading volumes experienced a decline across exchanges. Binance’s resilience and ability to attract heightened trading activity amidst market challenges demonstrate its continued significance in the cryptocurrency landscape. Despite recent legal issues faced by its founder, Changpeng Zhao, Binance remains a formidable player in the industry.
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