CEX Trading Volumes Dip in April After Three-Month Run
• CEX trading volumes saw a decline in April for the first time in three months.
• Binance’s 24-hour trading volume is significantly higher than its closest competitor, Coinbase.
• Digital asset markets have cooled off from their highs in mid-April and analysts suggest that the current correction may persist.
CEX Trading Volumes See First Decline in Three Months
According to Kaiko, a blockchain data provider, trading volumes on centralized exchanges have fallen after three consecutive months of gains. The volumes in April were almost half of those in March, and Kaiko noted that volumes had reached pre-FTX collapse levels until the decline in April. Nevertheless, the crypto market remains more significant than before the 2020 bull run.
Binance Dominates Crypto Exchange Market
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— Kaiko (@KaikoData) May 3, 2023 In April, legitimate centralized exchange spot volume took a 43.8% dip, settling at $400.5 billion as reported by blockchain analyst Lars0x. Binance still holds the top spot dominating 71.6% of the market as per data provided by CoinGecko with its 24 hour trading volume standing at approximately $10 billion dwarfing its closest competitor Coinbase which has a trading volume of $1.14 billion .
Binance Bitcoin Balance Balloons
Binance’s bitcoin balance ballooned by over 50,000 BTC equivalent to roughly $1.5 billion in a single month just before BTC faced tough resistance above the$30 000 mark and dropped . In addition to this ,Coinbase’s application downloads have been decreasing as trading activity fizzles out in sideways market .
Digital Asset Markets Cool Off From Highs
As digital asset markets began to cool off from their 2023 highs observed mid-April ,the decline in CEX volume followed suit with total market capitalization reaching an eleven month high of 1 34 trillion but retreating 10 4 % to 1 20 trillion since then .
Correction To Persist?
Since markets had been somewhat overheated during first quarter of year ,analysts suggesting that current correction will likely persist as digital assets cool off from their highs .