Trading volume on centralized exchanges (CEX) fell sharply in June, while decentralized exchanges (DEX) continued to set new records.
MAIN CONTENT
CEX trading volume fell to the lowest level in 9 months, reaching 1.07 trillion USD in June.
Trading on DEX surged, reaching a record 390 billion USD in June.
How did trading volume on CEX decline in June 2024?
According to a report from The Block on July 2, the spot trading volume on centralized exchanges (CEX) in June fell to 1.07 trillion USD, the lowest level in the past 9 months. This signals a decline in centralized trading activity during this period.
The prolonged decline since the beginning of the year reflects a shift in investor sentiment and influences from macro factors, reducing trading momentum on traditional CEX channels.
What stood out about trading volume on DEX in June?
Data shows that decentralized exchanges (DEX) achieved a record trading volume of 390 billion USD in June, continuing a growing trend that began recovering in May after a decline since the beginning of the year.
This marks strong growth for DEX, explained by the trend of shifting trading to decentralized platforms with superior security and utility features.
The current cryptocurrency market cycle is primarily driven by large institutions accumulating Bitcoin, rather than retail investors, which reduces trading pressure on centralized exchanges.
Min Jung, Analyst at Presto Research, 2024
Why does institutional Bitcoin accumulation affect CEX trading volume?
Analysis from expert Min Jung indicates that institutions accumulating Bitcoin create a trend of long-term holding, reducing short-term trading activities on centralized exchanges. Instead of frequently trading, institutions prioritize buying and holding in cold wallets to benefit from long-term price increases.
This trend has reduced constant buying and selling pressure on CEX, leading to a decline in trading volume as retail investors play a less prominent role.
The shift of cash flow from CEX to DEX reflects a change in how cryptocurrency is traded and managed by the community.
Cryptocurrency market analysis, July 2024 report
Comparing the growth rate of CEX and DEX trading in the first six months of 2024
Month | CEX Trading Volume (billion USD) | DEX Trading Volume (billion USD) | Trend 1 | 1,500 | 320 | CEX peaks, DEX starts to decline 2 | 1,400 | 310 | CEX declines, DEX declines 3 | 1,300 | 300 | CEX declines, DEX declines 4 | 1,200 | 310 | CEX declines, DEX starts to increase 5 | 1,100 | 350 | CEX declines, DEX recovers strongly 6 | 1,070 | 390 | CEX drops to a 9-month low, DEX sets a record
What factors are driving DEX growth in this context?
The advantages of decentralization, not being controlled by intermediaries, along with the development of Layer 2 solutions that reduce gas fees and increase transaction speeds, are the main reasons why DEX attracts larger cash flows. Additionally, institutional users are increasingly participating in on-chain transactions, supporting liquidity and yield farming on DEX.
What do experts predict about the cryptocurrency trading trend in the near future?
Cryptocurrency market experts believe that the shift from centralized exchanges to decentralized ones will continue, especially as technological advances and security mechanisms for cold wallets improve. The Bitcoin accumulation cycle by institutions remains a crucial factor shaping long-term trends.
Frequently Asked Questions
Is the decline in CEX trading volume a sign of a weak market?
The nature of the decrease in volume due to institutions accumulating more does not necessarily reflect a weak market but rather a change in investment methods.Why has DEX recorded a record high trading volume?
DEX is growing thanks to convenience, security, low transaction fees, and meeting the needs of both professional and individual investors.How does Bitcoin accumulation affect Altcoin prices?
Bitcoin accumulation locks up cash flow; however, Altcoins still attract trading due to their diverse applications and technological innovations.How to use DEX effectively?
Users need to thoroughly understand wallets, operational mechanisms, and secure their Private Key information when using DEX.Does decreased trading volume affect gas fees?
Gas fees typically decrease when overall trading decreases but depend on the specific network and blockchain congestion.
Source: https://tintucbitcoin.com/dex-lap-ky-luc-cex-thap-ky-luc/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
