Crypto Monthly Trading Volume Drops for First Time in Seven Months to $6.58T

As a seasoned crypto investor with years of experience in this volatile market, I’m not surprised by the latest decline in trading volume and the sell-off of major cryptocurrencies. The geopolitical tensions and unexpected macroeconomic data have weighed heavily on the digital assets market, causing a major correction from the record highs reached in March.

I analyzed the cryptocurrency market trends in April and noticed a decrease in trading volume for the first time in seven months. This cooling down of the market was due to several factors, including heightened geopolitical tensions and slower investments into U.S.-listed spot Exchange-Traded Funds (ETFs).

As a researcher examining the latest market trends, I’ve discovered that the total volume in the spot and derivatives markets experienced a significant decrease of 43.8%. This reduction brought the current figure down to $6.58 trillion, marking a substantial pullback from March’s record-breaking high of $9.12 trillion, as reported by CCData based in London.

The interest in derivatives waned among investors once more, with transactions in the futures and options market plummeting by nearly half to approximately $4.57 trillion. Concurrently, the volume in the spot market saw a more moderate decrease of around 32.6% to roughly $2.01 trillion.

“According to CCData’s report shared with CoinDesk, the decline was caused by unexpected economic data, worsening geopolitical tension in the Middle East, and negative investments in U.S. bitcoin ETFs at the spot market, resulting in major cryptocurrencies giving back their March gains.”

The CoinDesk 20 Index, which represents the most readily tradeable digital assets, experienced a nearly 20% decrease in value. Meanwhile, the overall crypto market saw a decline of approximately 16.8%, bringing its capitalization down to around $2.177 trillion.

Binance, the leading crypto exchange by trading volume, experienced a decrease in its overall market share, amounting to 41.5%, due to a significant drop in spot market trading volume. In April alone, this figure declined by 39.2% to reach $679 billion – marking the first decline since September 2023.

As a data analyst, I’ve observed an intriguing correlation between events: Binance’s diminishing market share and the announcement of a four-month prison sentence for its founder and former CEO, Changpeng Zhao, due to U.S. money laundering law infringements.

As a researcher, I’ve uncovered some intriguing developments regarding the leadership change at Binance. In November, their CEO Changpeng “CZ” Zhao admitted guilt to U.S. criminal charges and subsequently stepped down from his position. Following this event, Binance experienced a notable growth in market share, rising from 30.8% to 33.8% in the spot market according to CCData’s latest report.