This Is How Bad Trading Volume In August Was

CCData’s crypto exchange report for August released. TL;DR version is volumes are low, like, almost four years low. 

Spot Trading’s Historic Lows

  • Spot trading volumes on centralized exchanges dipped for the second month in a row, down 7.78% to $475 billion.
  • This isn’t just a minor blip; it’s the lowest monthly spot trading volume since March 2019.
  • August 26th was particularly bleak, with daily volumes at a mere $5.90 billion, a number not seen since February 7th, 2019.
  • Even Grayscale’s win against the SEC couldn’t spark the expected crypto accumulation. 😕

Exchange Dynamics

  • Huobi bucked the trend, with its spot trading volume skyrocketing by 46.5% to $28.9 billion.
  • Binance, the king of spot trading with $183 billion in volumes, saw its market share shrink for the sixth month straight, now at 38.5%.
  • But it’s not all roses for Huobi; whispers of unusual $USDT and $WETH outflows have raised eyebrows. 🥸

Derivatives Market Woes

  • August 17 was a day to forget, with a staggering 19.5% drop in open interest on derivatives exchanges, wiping out $4.13 billion.
  • This was the year’s most significant decline, spurred by rumors of SpaceX offloading its BTC.

Top-Tier Exchanges Holding Strong 

  • Top-tier exchanges held onto 66.9% of the total spot volume.
  • Binance, Coinbase, and Upbit led the charge, accounting for roughly 72.0% of the total volume.

As a side note – Summer is one of the doldrums of trading, especially in August. Still, the low volume 

Learn More About...

More in   Crypto

View All

Déjà Vu: SEC Targets Kraken Again

The SEC is going after another one of Kraken’s tentacles, they’re now alleging Kraken has been hosting an unlicensed crypto rodeo since 2018. 🙄

Oh, and they’re alleging a delightful mix of sloppy record-keeping and customer funds.

Read It

Zhao Waves Farewell to Binance CEO Role in a $4.3 Billion DOJ Deal

In November 2022, FTX collapsed, and Sam Bankman-Fried’s road to ruin began. The crypto market at the time was already on a route, down -66% from its August 2021 all-time highs. 📺

CZs tweet in November 2022 triggered another wipeout in crypto, with the total market cap dropping -27.5% over seventeen days, extending the total loss from the all-time high to -76%. 

In one year, two things: tried SBF and found him guilty. Then they pulled off a somewhat less dramatic but nonetheless major takedown (via massive fines and settlement) of Binance and its now former CEO, CZ. 

According to the presser released by the DOJ, here’s a quick rundown of what went down:

  • Binance Pleads Guilty: Binance Holdings Limited pleaded guilty to anti-money laundering, unlicensed money transmitting, and sanctions violations.
  • Historic Penalty: Binance agreed to pay over $4 billion to resolve the Justice Department’s investigation, marking one of the largest corporate penalties in U.S. history.
  • CEO’s Guilty Plea: Changpeng Zhao, Binance’s CEO, also pleaded guilty to failing to maintain an effective anti-money laundering program and resigned as CEO.
  • Coordinated Resolutions: The plea is part of coordinated resolutions with the Department of Treasury’s FinCEN, OFAC, and the U.S. Commodity Futures Trading Commission (CFTC).
  • Attorney General’s Statement: Attorney General Merrick B. Garland emphasized that Binance’s rise was partly due to its criminal activities and stressed the consequences of using technology to break the law.
  • Treasury Secretary’s Remarks: Janet L. Yellen highlighted Binance’s willful legal failures, allowing money to flow to terrorists and other criminals through its platform.
  • Deputy Attorney General’s Warning: Deputy Attorney General Lisa O. Monaco warned crypto and DeFi companies about the importance of complying with U.S. law.
  • Intentional Violations: Binance and Zhao willfully violated anti-money laundering and sanctions laws, threatening U.S. financial systems and national security.
  • Binance’s Growth Strategy: Binance prioritized growth and profits over compliance, knowingly operating without anti-money laundering safeguards and allowing illegal transactions.
  • Forfeiture and Fine: Binance agreed to forfeit $2.51 billion and pay a criminal fine of $1.81 billion, totaling a financial penalty of $4.31 billion. They also agreed to retain an independent compliance monitor for three years and enhance their anti-money laundering and sanctions compliance programs.
  • Zhao’s Role: Zhao admitted to prioritizing Binance’s growth over compliance, causing illegal transactions, and failing to implement effective anti-money laundering protocols. 📻

A few hours after the Binance and CZ news came out, Coinbase’s CEO, Brian Armstrong, took to X:

From the perspective of gaining, keeping, and acquiring the US crypto customer base, Coinbase is sitting pretty nicely right now. 


Read It

Technically Speaking – November 3, 2023

It’s easy to get caught up in the big moves of individual cryptos, but over the past 30 days there’s been a sort of hidden rally in cryptocurrencies focused in the DeFi sector. 👁️‍🗨️

Let’s take a look at a couple of those charts. 

Read It