Centralized crypto exchanges have seen a dip in trading volumes in April for the first time in three months as digital assets cool off from a hot first quarter.
According to blockchain data provider Kaiko, trading volumes on centralized exchanges have fallen back following three consecutive months of gains.
April’s volumes were almost half of those in March at roughly $500 billion, according to the data. The month has been the lowest so far this year in terms of volumes with March being the highest.
The data provider noted that volumes had reached pre-FTX collapse levels until April’s decline. It also noted that markets remain above 2020 levels in terms of trade volumes.
“Overall, however, the crypto market remains significantly larger than it was before the 2020 bull run,” said Kaiko.
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
According to data from The Block, legitimate centralized exchange spot volume decreased by 43.8% to $400.5 billion in April.
“The majority of the decrease is due to Binance adding back fees on BTC pairs,” it noted. Binance remains the market leader with a dominance of 71.6%, according to the data.
Furthermore, Binance has a 24-hour trading volume of around $10 billion which is significantly larger than its nearest rival Coinbase with $1.1 billion, according to CoinGecko.
In late April, Cointelegraph reported that Binance’s Bitcoin balance increased by over 50,000 BTC, roughly $1.5 billion, in a month. The move preceded the sell-off as BTC hit heavy resistance just over the $30,000 level.
U.S.-based crypto exchange Coinbase has seen its app downloads also in decline in recent months as trading volumes dwindle in the sideways market, according to a report from Yahoo News.
Tom Grant, the VP of research at Apptopia, a research firm that tracks app usage metrics, said the shrinking app usage paints a bearish picture for the company.
The CEX volume decline comes as digital asset markets began to retreat from their 2023 highs in mid-April. On April 16 total market capitalization hit an eleven-month high of $1.34 trillion. However, markets have declined 7.5% to $1.24 trillion since then.
Since the beginning of the year, crypto markets have gained 50% but they have remained largely range bound for the past six weeks or so.
Analysts have hinted that the correction is likely to continue as markets have been somewhat overheated for the first quarter of the year.
Disclaimer: CryptoNewsBook is an online aggregator that fetches latest crypto news from different sources. This article is provided for general information purposes ONLY and contains data fetched from third party sources; hence, we do not endorse its accuracy. For more details, kindly visit The Source. Please report any fake news or false statement to Our Support Team. If you are the original owner of this content and wish it to be removed on this platform, kindly forward your request to Our Support Team.
Also Note: Cryptocurrencies are unregulated, and no part of this article should be understood nor interpreted as a recommendation/advice. #s1