May Data: CEX Spot Trading Volume Hits New Low Since March 2019, Binance Market Share Declines for Three Consecutive Months

According to the latest monthly report from CCData, due to factors such as market weakness and U.S. regulations, the trading volume of centralized exchanges (referred to as CEX) continues to decline. Although Binance still maintains its position as the top exchange, its market share has been decreasing consecutively. It may be due to regulations that the Chicago Mercantile Exchange (CME) has seen growth in derivative trading volume while mainstream exchanges have experienced declines. Additionally, the monthly trading volume of the leading decentralized exchange, Uniswap, has been higher than all CEX exchanges except for Binance for four consecutive months.

CEX Spot Trading Volume Hits Lowest Since March 2019

In May, CEX spot trading volume was around $495 billion, a 21.7% decrease, marking the lowest monthly volume since March 2019.

According to CCData's data for April, top exchanges accounted for 72% of spot trading volume, a slight decrease from CCData's latest April data of 74.2%.

Derivatives Trading Volume Hits Lowest Since December 2022

In May, derivatives trading volume was approximately $1.95 trillion, a 15.7% decrease.

However, CCData points out that the "Derivatives-to-Spot Ratio" continues to grow, with the proportion becoming increasingly imbalanced, with derivatives accounting for a record high of 79.8%.

Binance Spot and Derivatives Market Share Declines for Three Consecutive Months

Correlated with the overall derivatives trading volume, Binance's derivatives trading volume was around $1.1 trillion, a 16.3% decrease, also hitting a new low since December 2022.

This marks the third consecutive month of decline in Binance's derivatives market share, but it still maintains a dominant position with a market share of 56.3%, followed by OKX at 18.1% and Bybit at 11.4%.

Furthermore, due to various factors such as a soft market, elimination of zero trading fees for Bitcoin spot trading, cessation of BUSD issuance, and civil lawsuits by the CFTC and SEC, Binance's spot market share has also seen a decline for three consecutive months.

In May, spot trading volume was around $212 billion, a 26% decrease, with market share dropping from 45.4% to 43%.

CME Derivatives Trading Volume Increases

Is it due to regulatory reasons that institutional traders are turning to CME Group? CME's derivatives trading volume in May was around $39.1 billion.

Although growing by only 0.53%, this growth occurred while Binance saw a -16.3%, OKX -14.5%, and Bybit -27% decline in derivatives trading volume.

CME continues to dominate with BTC futures trading volume accounting for approximately $29.5 billion, while BTC options and ETH futures trading volume decreased by 41.1% and 20.6% respectively.

Uniswap Trading Volume Ranks Second for Four Consecutive Months

In May, Uniswap's trading volume was around $33 billion, a decrease of 11.6%, marking the fourth consecutive month where it has ranked higher than all CEX except Binance.

In addition, it has been over two years since the significant upgrade to Uniswap v3, and recently Uniswap released its vision for Uniswap v4. For more details on the upgrade, please refer to the previous report:

Upgrade Highlights: What is Uniswap v4? Expectations for TWAMM, Dynamic Fees, and more