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As the heat of regulatory pressure grows in the United States, centralized exchanges have experienced a sharp decline in trading volumes. This development has been analyzed by CCData, a leading crypto analytics firm revealing that May's spot and derivatives combined trading volume fell 15.7 percent from April levels, marking its lowest level in four years.
This downward spiral is not new to most traders as they have long anticipated it. The stakes were raised further when Binance took an additional hit on its total market share; it sunk to only 43 percent overall after peaking at an impressive 57 percent back in February. While reports point out that this was majorly due to Binance removing zero-fee transactions for USDT pairs, one cannot close eyes to the fact that increased scrutiny from U.S. regulators may have played a role.
The beneficiaries of Binance's struggles turned out to be rivals Bybit, BitMEX, and Bullish - each gaining a little over one percent increase between March and May market share. However, before news broke out about Coinbase or Binance's legal woes with the Security Exchange Commission (SEC), total trading volumes were already plunging down relentlessly till hitting rock bottom!
In just two days following SEC's attack against Changpeng Zhao, the Binance team caught net outflows sinking more than $778 million!
Interestingly enough, when those same forty-eight hours of trading took place, the median trading volume across leading decentralized exchanges increased sharply by something like 444%.
While centralized exchange activity decreases primarily through spot trading, derivates produce impressive gains, which account for 79.5% of crypto markets. The report shows 1.2% growth compared with the prior month, but at the same time shows losses; falling 14.4% for May alone.
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