Centralized crypto exchanges (CEX) saw their trading volumes drop for the first time in three months as digital assets stalled after a bustling first quarter.
According to blockchain data provider Kaiko, transaction volumes on centralized exchanges slumped after three consecutive months of gains. According to the data, April volumes amounted to about $500 billion, almost half as much as March. While April was the lowest month in terms of volume, March was the month with the highest transaction volumes.
A 43.8 percent decline was experienced in April
Kaiko noted that by the April drop, volumes had reached pre-FTX bankruptcy levels.
The data provider also noted that the markets remained above 2020 levels in terms of trading volumes. “Overall, the crypto market continues to be significantly larger than before the 2020 bull run,” Kaiko said in a statement.
According to data from blockchain analyst Lars0x, spot volume of the legal centralized exchange fell 43.8 percent in April to $400.5 billion.
Lars0x said that much of the drop was due to Binance adding fees to BTC pairs. Binance remains the market leader, with a 71.6 percent advantage according to the data. Also, according to CoinGecko, Binance’s 24-hour trading volume is around $10 billion, significantly larger than its closest competitor, Coinbase at $1.1 billion.
The drop in CEX volume came as digital security markets began to pull back from their 2023 highs in mid-April. On April 16, the total market cap reached $1.34 trillion, the highest level in the past eleven months. But since then, markets have fallen 7.5 percent to $1.24 trillion.
Crypto markets have gained 50 percent since the start of the year, but have been in a largely limited range over the past six weeks. Analysts hinted that the correction will continue as markets warmed up a bit in the first quarter of the year.
32637
