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
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
Read more on cointelegraph.com