Crypto Spot Market August Trading Volume Hits 4.5-Year Low as Volatility Fails to Spur Activity

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Volatility following the Grayscale's court victory over the SEC failed to translate into trading volumes on centralized exchanges, CCData said.

The low spot-trading volume and fluctuations in derivatives open interest point to a speculation-driven market.Activity in the crypto spot market fell to the lowest level in more than four years last month, extending a lull at digital asset trading desks, as volatility sparked by Grayscale Investments'failed to stir traders from their torpor.

Volume in derivatives fell over 12% to $1.62 trillion, the second-lowest since 2021, and derivatives' share of total market activity contracted for a third consecutive month to 77.3%. The dollar value locked in open derivatives contracts tanked 19.5% to $17.1 billion, wiping out $4.13 billion in open interest on selected exchanges. That's the largest decline in open interest this year.

"The combined trading volume of spots and derivatives on centralized exchanges fell 11.5% to $2.09 trillion as the volatility following the Grayscale's victory over SEC failed to translate into trading volumes on centralized exchanges," CCData said in a report shared with CoinDesk."The low spot trading volume and the fluctuations in the open interest data suggest that the market is currently driven by speculation.

In contrast, Huobi's share in the global spot market activity rose 2.26% and accounted for 6.09% of the total spot market volume. That made it the second-largest centralized spot exchange by volume.

 

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