Crypto Exchange Trading Volume Drops to Six-Month Low as Investors Shift to Derivatives.

On April 20th, the combined trading volume on major centralized exchanges, including Binance, Coinbase, and Bitfinex, fell to $30 billion – its lowest level since October 2024. This figure represents a drop of over 75% from the peak of $132 billion recorded in early December 2024.

A similar trend is observed on decentralized exchanges (DEXs), where April's trading volume is also poised to be the lowest since October.

Investors Pivot Towards Derivatives

The ratio of Bitcoin spot to futures trading volume has declined to 0.19, the lowest level since August 2024. For Ethereum, this ratio has dropped to 0.2, marking a low not seen since December 2023.

This data suggests a growing inclination among investors towards derivatives like futures and options, which offer tools for hedging risks and utilizing leverage.

Solana Shows Growth #solana $SOL

In contrast to Ethereum $ETH , decentralized exchange volumes on Solana are on the rise. Weekly trading volume on Solana DEXs has surpassed that on Ethereum, indicating increasing interest in the Solana ecosystem.

Conclusion

The decrease in spot market trading volume and the corresponding increase in interest in derivatives signal a shift in investor behavior amid heightened volatility. The market appears to be entering a phase of caution, where hedging instruments are becoming a priority.