Centralized cryptocurrency exchanges witnessed a notable rise in trading activity for the second consecutive month, according to CCData’s latest monthly report.
Per the report, total spot and derivatives trading volumes grew by 5.38%, reaching $5.22 trillion in August.
The report attributes the increase in trading volume to heightened market volatility, driven by the unwinding of the Japanese Yen carry trade, which resulted in selling pressure across both traditional financial markets and digital assets.
Spot Trading Surges by 7%
Spot trading on centralized exchanges saw a 7.06% surge, hitting $1.54 trillion, the highest level since May.
Derivatives trading volumes followed a similar trend, increasing by 4.70% to $3.68 trillion, also the highest since May.
However, the report noted that August’s price downturn triggered a wave of liquidations.
Open interest across derivatives exchanges fell by 15.7%, settling at $45.8 billion.
Crypto.com was a standout performer, experiencing the largest growth in market share.
Its spot trading volume surged by over 38% to $95.6 billion, marking its highest level since 2022.
Additionally, its derivatives trading volume reached an all-time high of $104 billion.
Coinbase International also reported strong gains, with derivatives trading volume jumping 106% to $58.2 billion.
In contrast, derivatives trading on the Chicago Mercantile Exchange (CME) saw a slight decline of 1.16%, with ETH futures and options trading volumes plummeting by 28.7% and 37%, respectively.
The decline suggests a waning interest in Ethereum from institutional investors.
Meanwhile, CME’s BTC futures volumes rose by 3.74% to $104 billion, while BTC options trading dipped by 13.4%, reaching $2.42 billion.
Crypto ETFs Face Continued Outflows
Meanwhile, crypto funds globally continue to face challenges.
In the U.S., spot Bitcoin ETFs have faced six consecutive days of net outflows, with $37.29 million leaving the products on Wednesday.
Grayscale’s GBTC, the second-largest spot Bitcoin ETF, recorded the largest outflows at $34.25 million, while Fidelity’s FBTC and VanEck’s HODL also saw significant withdrawals.
Likewise, U.S. Ethereum ETFs have experienced outflows.
The Grayscale Ethereum Trust (ETHE) recorded net outflows of $40.63 million on Wednesday, while the Grayscale Ethereum Mini Trust (ETH) reported inflows of $3.12 million.
Trading volume across the nine Ethereum ETFs declined to $145.86 million, down from $163.5 million the previous day.
As reported, digital asset investment products faced significant outflows last week, with a total of $305 million exiting the market.
The trend reflects a broader wave of negative sentiment that has gripped the cryptocurrency market across various regions and providers.
The primary catalyst behind this downturn appears to be stronger-than-expected economic data from the United States, which has reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve.
Bitcoin was at the center of this exodus, experiencing outflows totaling $319 million.
However, short Bitcoin investment products, which profit from declines in Bitcoin’s price, saw their second consecutive week of inflows, amounting to $4.4 million.
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