Data provided by cryptocurrency data platform CryptoCompare indicates that the monthly spot trading volume plunged 31.5% in July despite the sector recording a short-term rally. The volume stood at $1.9 trillion, recording the lowest value for 2021. Similarly, the drop also reflected on leading crypto exchanges globally to stand at $1.7 trillion or 30.7%. Elsewhere, in lower-tier exchanges, the spot volumes dropped 37.8%. On Binance, the volume was $455 billion, followed by OKEx’s $96.8 billion, with Huobi Global accounting for $92.7 billion.
Derivatives markets volume drops
The derivatives market also took a hit, with the volumes dropping 22.6% in July to $2.5 trillion. However, interest in crypto investment products surged in July at a weekly average of $17.7 billion, increasing 7.5% from June. Notably, aggregate open interest in Bitcoin futures grew 4.5% to $10.1 billion while ETH futures products surged 2.4%. From the spot volume, it is clear the crypto momentum had little impact. The cryptocurrency sector suffered high volatility between May and June, with Bitcoin plunging almost 50% from the April all-time high of $64,800. However, towards the end of last month, Bitcoin embarked on a resurgence targeting the $40,000 mark. By press time, the asset was trading at $39,200, according to data provided by CoinMarketCap. The plunge in Bitcoin and the general crypto market was occasioned by increasing cryptocurrency regulation. Several jurisdictions globally announced a raft of measures to regulate the sector with some citing a threat to financial stability. Bitcoin’s price also plunged significantly due to an increased debate on the asset’s mining carbon footprint. [coinbase]
