Spot trading volumes across all centralised crypto exchanges across the world fell by 27.5 per cent month-on-month in June to $1.41 trillion, the lowest figure recorded since December 2020, said a report by digital asset data provider Crypto Compare.

Spot trading volumes on major global exchanges also experienced a significant fall with Binance, FTX and Coinbase dropping 25.2 per cent, 19.9 per cent and 25.8 per cent to $398 billion, $71.6 billion and $59.1 billion, respectively. Bitcoin and Ethereum closed the month at $19,908 and $1,070, falling 37.4 per cent and 44.9 per cent, recording their largest monthly drop since February 2014 and March 2018, respectively.

The global crypto market is seeing its second trading crash of 2022 — the collapse of Terra Luna had wiped off $500 billion in May.

Crypto winter

According to the report, derivatives trading volume, which represents 66.1 per cent of the market, fell 7.01 per cent to $2.75 trillion. This was the lowest since July 2021. Derivatives volume on major global exchanges such as Binance, OKX and FTX, declined in June, falling 6.35 per cent, 11.2 per cent and 11.5 per cent to $1.56 trillion, $458 billion and $281 billion, respectively.

Top-tier spot volumes also decreased 28 per cent to $1.28 trillion in the month and lower-tier spot volumes fell 22.2 per cent to $130 billion. Top-tier exchanges now represent 90.8 per cent of total spot volume.

As the global cryptocurrency market experiences a bear run, the words “crypto winter” are on every investor’s lips. In India as well, trading volumes are seeing a major downturn, especially after the implementation of the April tax and 1 per cent TDS rule.

BusinessLine had previously reported that, with trading volumes being down by nearly 80 per cent since January this year, Indian trading exchanges are raising an alarm for liquidity crunch with major exchanges such as Vauld, WazirX, CoinDCX, Coinswitch Kuber suspending withdrawals. Smaller exchanges — Koinex, Coinsecure, Bitxoxo, Colodax and many others — have already shut down, and experts note that if the ongoing liquidity crunch persists for six more months, many more small exchanges will be in the danger of shutting down.

‘Opportunity to improve’

Reacting to the report, Atulya Bhatt, Co-Founder of BuyUcoin, noted, “Ups and downs are part of the crypto market. Exchanges must take this downturn as an opportunity to innovate, improve key exchange operations and products to be ready for the next bull run in the market.”

Speaking on BuyUcoin’s next steps, Bhatt noted that they are looking to expand in markets around the globe, including Latin America, Middle East and Europe. “Now is the good time to focus on these plans, when the market is going down and the activity is low,” said Bhatt.