Despite a surge in activity over the final few weeks of last month, the number of transactions on cryptocurrency trading platforms in the three consecutive months that concluded in June was the least since the second quarter of 2019. According to a study by researcher Data, volume on so-called centrally managed exchanges increased by 16.4% to $575 billion within June, marking the first gain in three months. Overall, the amount traded decreased 62% from the same period last year and decreased 40% from the initial quarter to $1.7 trillion, according to the researcher.
The market proportion of non-derivatives volume traded held by Binance fell for a fourth straight month in June, falling from 42% to 1.4%. The largest cryptocurrency platform saw the steepest decline in market share among centralized exchanges, recording its lowest marketplace share since August 2022. Some well-known trading pairs were no longer available on Binance, which contributed to the fall.
The Securities and Exchange Commission of the US filed a lawsuit against Binance, its CEO Changpeng “CZ” Zhao, and Binance.US, a company he also controls, at the beginning of June for violating US securities laws. Binance has referred to the lawsuit as “disappointing,” and it has stated that it intends to put up a resolute fight.
The trading drop hitting lowest
Binance.US’s market share decreased as well, from 0.36% to 0.86%, according to Data. The report noted that among the major exchanges, Coinbase Global Inc.’s market share dropped the least, by 0.08% to 5.36%, “hinting at increased US corporate trading activity on the trading platform following BlackRock’s ETF filing” late in the month. The flurry of recent ETF candidates have been mentioned as using Coinbase for market surveillance, custody, or other services.
According to Data, Coinbase accounts for 61% of the Bitcoin transactions among US-registered exchanges. According to the analyst, it made up 5.83% of all Bitcoin trade volumes worldwide. In June, the SEC also filed a lawsuit against Coinbase for securities violations.
To continue to have a strong correlation with cryptocurrency values, and the majority of the world’s largest banks continue to forecast a severe recession in the United States sometime in 2023. Major market indices nevertheless reached yearly highs following the agreement on the US debt ceiling despite this. The SEC’s actions are causing the difference between stocks and bitcoin to grow. Since the complaint, about $88 million has been lost from investments in digital assets.
The new SEC lawsuit is only the latest in a long line of disagreements, misconceptions, or mistrust regarding the real-world applications of digital assets. Some believe that U.S. lawmakers are upset with the crypto business as a result of the FTX collapse. The most recent conflict is focused on the usage of consumer funds by centralized exchanges.
DeFi has not seen growth despite the netflow shift to on-chain self-custody. The total value locked (TVL) indicator is a widely used metric for assessing the market’s condition and psychology. DeFiLlama claims that TVL decreased for all protocols. Investor mood regarding the current status of the economy is still poor, according to a U.S. Bank research that takes into account more than 1,000 data points.
Attacks on centrally managed exchanges have increased both the influx and outflow of Bitcoin. While withdrawals are usual for self-custody resources, exchange inflows signify greater sell-side pressure. Two of the biggest centralized cryptocurrency exchanges, Binance and Coinbase, have been sued in civil court by the United States Securities and Exchange Commission. According to the SEC, 61 different cryptocurrencies worth $100 billion are securities.
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