On centralized exchanges, spot trading increased by 7.06% to reach $1.54 trillion.
Centralized cryptocurrency exchanges witnessed a notable rise in trading activity for the second consecutive month, according to CCData’s latest monthly report.
The report states that in August, total spot and derivatives trading volumes increased by 5.38% to reach $5.22 trillion.
According to the report, the unwinding of the Japanese Yen carry trade caused selling pressure in both traditional financial markets and digital assets, which in turn caused an increase in trading volume.
Spot Trading Surges by 7%
On centralized exchanges, spot trading surged by 7.06% to reach $1.54 trillion, the highest amount since May.
Comparable increases were seen in derivatives trading volumes, which rose by 4.70% to $3.68 trillion, the highest level since May.
The report did point out that a wave of liquidations was brought on by August’s price decline.
Derivatives exchanges’ total open interest dropped by 15.7% to $45.8 billion.
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Spot and derivatives volume on CEXs climbed 5.38% to $5.22tn in August, the second consecutive month of increased crypto trading activity.
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With the biggest increase in market share, Crypto.com was an exceptional performer.
At $95.6 billion, its spot trading volume reached a record high, up more than 38% from 2022.
Its derivatives trading volume also hit a record-breaking $104 billion.
Strong gains were also reported by Coinbase International, whose derivatives trading volume increased by 106% to $58.2 billion.
Conversely, the Chicago Mercantile Exchange (CME) witnessed a minor decrease in derivatives trading of 1.16%, as the trading volumes of ETH futures and options fell by 28.7% and 37%, respectively.
The drop indicates that institutional investors’ interest in Ethereum is waning.
In the meantime, BTC options trading fell by 13.4% to $2.42 billion, while CME’s BTC futures volumes increased by 3.74% to $104 billion.
Crypto ETFs Face Continued Outflows
Globally, cryptocurrency funds are still having difficulties.
Spot Bitcoin ETFs in the United States have seen net withdrawals for six straight days; on Wednesday, $37.29 million was pulled out of the products.
The largest outflows were recorded by Grayscale’s GBTC, the second-largest spot Bitcoin ETF, at $34.25 million. Notable withdrawals were also made by Fidelity’s FBTC and VanEck’s HODL.
Likewise, there have been withdrawals from US Ethereum ETFs.
On Wednesday, the Grayscale Ethereum Mini Trust (ETH) reported inflows of $3.12 million, whereas the Grayscale Ethereum Trust (ETHE) reported net outflows of $40.63 million.
From $163.5 million the day before, the trading volume of the nine Ethereum ETFs decreased to $145.86 million.
As reported, digital asset investment products faced significant outflows last week, with a total of $305 million exiting the market.
The pattern is indicative of a larger wave of pessimism that has engulfed the bitcoin industry across different geographical areas and service providers.
Stronger-than-expected US economic data appears to be the main driver of this downturn, which has decreased the likelihood of a 50 basis point interest rate cut by the Federal Reserve.
The focal point of this flight was Bitcoin, which saw outflows of $319 million.However, short Bitcoin investment products, which profit from declines in Bitcoin’s price, saw their second consecutive week of inflows, amounting to $4.4 million.