Crypto Market Resurgence: Combined Spot and Derivatives Trading Volume Soars by 19% in July 2024

The July 2024 edition of CCData’s Exchange Review report reveals several significant trends in the digital asset market.

CCData, an FCA-authorized benchmark administrator, is a global leader in digital asset data. It offers high-quality real-time and historical data for institutional and retail investors. Known for its expertise and objective insights into the digital asset industry, CCData publishes the Exchange Review monthly.

This report captures key developments in the cryptocurrency exchange market, including analyses of exchange volumes, crypto derivatives trading, market segmentation by fee models, and crypto-to-crypto versus fiat-to-crypto volumes. It also examines Bitcoin trading against various fiat currencies and stablecoins, ranks top crypto exchanges by spot trading volume, and tracks historical volume trends for top trans-fee mining and decentralized exchanges. The review caters to crypto enthusiasts, investors, analysts, and regulators seeking comprehensive and specific market analyses.

In July 2024, the cryptocurrency market saw a significant revival, with combined spot and derivatives trading volumes on centralized exchanges increasing by 19.0% to reach $4.94 trillion, as reported by CCData. This rise marked the first monthly increase in four months, driven by bullish catalysts such as the launch of spot Ethereum ETFs in the US and optimistic sentiments from US political figures during the Bitcoin conference in Nashville, Texas, according to CCData.

Centralized exchanges recorded a substantial rise in monthly trading volumes for both spot and derivatives markets, with spot trading volumes increasing by 14.3% to $1.44 trillion and derivatives trading volumes rising by 21.0% to $3.50 trillion, based on CCData’s findings. The derivatives market’s share also reached 70.9%, the highest level since December 2023, as traders seized opportunities presented by these market catalysts, leading to major digital assets rallying to range highs last month.

Bybit’s spot trading volume surged by 22.9% to $132 billion in July, achieving the third-highest monthly volume on record for the exchange and securing its position as the second-largest spot exchange with a market share of 9.18%, as reported by CCData. Binance remained the largest spot exchange, holding a 28.1% market share despite a decline of 4.90% from the previous month. In the derivatives market, Binance continued to lead with a 43.5% market share, followed by OKX and Bybit with 19.0% and 15.1%, respectively. Notably, Crypto.com experienced significant growth in month-on-month trading volume, with increases of 104% in the spot market to $68.9 billion and 102% in the derivatives market to $75.6 billion, based on CCData’s analysis.

The launch of spot Ethereum ETFs in the US had a pronounced impact on the CME exchange, where derivatives trading volume rose by 23.7% to $130 billion, marking the second-highest monthly volume of the year, as highlighted by CCData. BTC futures trading volume on the CME increased by 24.0% to $101 billion, while ETH futures rose by 15.0% to $20.7 billion. Additionally, options trading on the CME reached a new all-time high, with total volume surging by 93.6% from June to $3.69 billion. BTC options trading volume increased by 89.8% to $2.72 billion, and ETH options volume soared by 122% to $897 million, indicating strong institutional interest in anticipation of the spot Ethereum ETFs, according to CCData.

On August 5th, digital asset prices experienced significant volatility due to concerns over the Japanese Yen carry trade and a potential global recession. Bitcoin’s price dropped to $49,202, marking a 15.4% intraday decline, the steepest since the FTX collapse in November 2022. This heightened volatility led to a surge in trading activity, with centralized exchanges recording the highest daily spot trading volume since May 2021, when China banned Bitcoin mining, as noted by CCData.

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