Spot Exchange Volumes Dip in September 2024; Crypto.com Gains Market Share

• Spot exchange volumes continued to fall steadily from their peak of $2.44 trillion in March 2024, reaching under $1 trillion in September of that year.
• Spot trade volume on Binance dropped by 22.9% to $344 billion, although market share went up to 11% for Crypto.com.
• After the latest Fed rate decreases, traders are looking for new opportunities, as seen by the 32.1% increase in derivatives open interest in September.

Spot exchange volumes decreased to $1 trillion in September 2024, keeping up a steady downturn from the $2.44 trillion peak seen in March. Volatility and trading preferences are factors influencing the way the Bitcoin market is changing. Binance, the leading exchange fell by 22.9% to $344 billion, in spot trading volume —the lowest since November 2023. 

Spot Market Activity Shifts Amid Declining Volumes

Spot trading volumes in recent months have showcased fluctuations. October 2023 recorded $472 billion, which rose to $1.1 trillion by December. The peak arrived in March 2024 with $2.44 trillion. However, volumes began to decline in April, hitting $1.48 trillion. By September, spot volumes had fallen to $1 trillion, with the largest exchanges experiencing sharp declines.

Significantly, Binance’s market share fell to 27%, highlighting a notable loss in dominance. Meanwhile, Crypto.com capitalized on this shift. Its spot and derivatives volume surged by 40%, boosting its market share to 11%. Consequently, Crypto.com became the fourth-largest centralized exchange.

Derivatives Market: A Glimpse of Optimism

While the derivatives market also saw declines in trading volume, open interest surged by 32.1%, reaching $52.4 billion—the highest since June. This spike was fueled by renewed optimism from traders following the Federal Reserve’s interest rate cuts. Besides, Binance led the derivatives market, recording $1.25 trillion in trades, followed by OKX and Bybit.

However, Binance’s dominance in the derivatives space is eroding, with competitors such as Upbit and Crypto.com gaining ground. Moreover, the CME exchange saw its Bitcoin futures volume drop by 9.04% to $95 billion in September, while options trading volume decreased by 43%.

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A change in traders’ tastes is also becoming noticeable, in addition to volatility. While up-and-coming firms like Crypto.com keep expanding, cryptocurrency exchanges like Binance and OKX are losing market share. The spike in open interest further indicates that traders are looking for opportunities in derivatives. As such, more changes in market leadership could be announced in the upcoming months.