Home / Markets / Cryptocurrency /  Crypto spot trading volumes decline to 2021’s lowest in  July

Despite July being a positive month for the cryptocurrency market, spot trading volumes plummeted 31.5% sequentially to $1.9 trillion, the lowest level recorded this year, according to a report by data provider CryptoCompare.

However, major cryptocurrencies, bitcoin and ethereum, rose 18.3% and 11.2%, month-on-month, respectively, during the month. China’s persistent crackdown on bitcoin mining took a toll on the market with the prices of the world’s biggest cryptocurrencies falling 6% and spot volumes slumping 42.7% in June.

The decline in crypto trading in July could be attributed to the regulatory concerns surrounding different aspects of the cryptocurrency market. “Exchanges, such as Binance, have seen increased scrutiny from regulators across the globe. Similarly, stablecoins have received criticism from regulators regarding potential risks to consumers and the global financial system," CryptoCompare said in a release.

In July, derivatives trading gained market share over the spot market despite the fall in volumes. Derivatives volumes were at 56.9% of total volumes in the cryptocurrency market, the highest level since November 2020, when derivative volumes had a 59.2% share. “This was after a 22.6% decrease in derivatives volume in July, to $2.5 trillion. Spot volumes fell to a greater extent, recording a 31.5% fall month-on-month to $1.9 trillion, the lowest spot volumes recorded so far this year," the report added.

Binance was the largest top-tier spot exchange by volume, trading at $455 billion (down 31.9%) in July. It was followed by OKEx trading at $96.8 billion (down 31.4%), and Huobi Global trading at $92.7 billion (down 42.7%). BeQuant, Coinbase and FTX were at $72.1 billion (down 6.5%), $5.38 billion (down 30.5%) and $35.2 billion (down 12.2%), respectively.

CryptoCompare said derivative volumes fell by 22.6% in July to $2.5 trillion. The derivatives market now represents 56.9% of the total crypto market, from 52.9% in June.

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