Binance, recognized as the largest cryptocurrency exchange globally, has achieved rapid global expansion within a short period. Despite navigating through the challenges of the bear market in 2022, the exchange encountered difficulties subsequent to facing lawsuits from regulatory bodies such as the CFTC and the SEC.
Recent data from CCData highlights a consecutive decline in spot trading volume on Binance. Specifically, the data indicate a notable 48% decrease in transaction levels during the month of April.
April Sees Binance Trading Volume Plunge to $287 Billion
In April, Binance encountered a notable decrease in trading volume, reaching $287 billion, as reported by CCData. This represents the second-lowest monthly volume since 2021. Furthermore, the market share of the exchange experienced a significant 46% drop.
Similar to other cryptocurrency exchanges, Binance observed a decline in spot trading volume, which plummeted by 40% and reached its lowest level since December.
CCData suggests that this decline in volume can be attributed to several factors, including uncertainties related to macroeconomic conditions such as potential recession threats and the collapse of several U.S. banks. In terms of trading volume, Coinbase and OKX secured the second and third positions, respectively, following Binance.
Do read: Bitcoin Transaction Fees Surge Past $30; What’s Behind it?
On May 8, a series of events unfolded, starting with Binance’s temporary suspension of Bitcoin withdrawals. This decision was made in response to congestion issues affecting the Bitcoin network. Coinciding with the suspension, CryptoQuant observed several bitcoin inflows and outflows on the exchange. The recorded changes during that day consisted of an outflow of 117,359 BTC, an inflow of 10,036 BTC, and another outflow of 40,184 BTC.