US Crypto Trading Volume Down 80% Since Mid-March

Coinbase still maintains the highest US trading volumes with close to 50% of the market share, but it’s a far cry from where the exchange once was

article-image

DUSAN ZIDAR/Shutterstock modified by Blockworks

share

Crypto trading volume in the US is down more than 80% in less than 3 weeks. 

US trading volumes peaked to four-month highs in mid-March as the banking crisis intensified and investors looked to move away from traditional finance, but traders have since pulled back. 

On March 14, US exchanges recorded $3,223,723,564 in trading volume. On April 2, by contrast, exchanges facilitated a mere $621,853,315 in crypto trades, according to data from crypto research firm Kaiko. 

The CFTC sued Binance on March 27. Since that time, volumes on the foreign exchange have dropped dramatically. Binance lost 16% of its global market share in the first quarter of the year, Kaiko analysts said. 

“We still need a bit more time to observe a long-term trend as the lawsuit is a recent event. Also, the sharp drop in volumes happened over the weekend,” said Clara Medalie, Kaiko’s head of research.

Coinbase maintains the highest US trading volumes with close to 50% of the market share, but it is a far cry from where the exchange once was. During the first quarter of the year, Coinbase’s market share dropped from an average of 60% a week to just 49% weekly. 

Binance.US managed to take over some of Coinbase’s losses, even amid the CFTC lawsuit. Binance.US’ market share has tripled from 8% to more than 24%. 

Binance isn’t the only narrative that is shifting trading patterns though, Medalie said. US exchanges have faced liquidity challenges with the loss of banks Silvergate and Signature. This has made it more difficult to deploy capital over the weekend, as potentially reflected in recent volume data. 

Read more: After Bank Failures, Where Will Crypto Firms Turn?

March’s US trading volume highs remain a departure from peaks seen in late 2022. In November 2022, in the aftermath of FTX’s collapse, US volumes spiked to more than $1 trillion as investors scrambled to pull assets off exchanges. 

On Nov. 12, 2022, the day after FTX filed for bankruptcy, US exchanges saw about $1.3 trillion in trading volume. By mid-December 2022, volumes fell back to around $586 million. 

Similar to centralized exchanges, decentralized crypto exchanges saw a large increase in mid-March. Uniswap facilitated more than $13 billion in trading volume while Curve facilitated close to $8 billion in trades on March 11, 2023, according to data from Blockworks Research.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member