In the midst of the macroeconomic financial ecosystem’s looming instability, major exchanges like Binance managed to steal the show in terms of volumes and user attention.
Volatility returned to the cryptocurrency markets in August, as the top two crypto assets by market capitalization — Bitcoin and Ethereum — failed to break above major resistance levels. BTC and ETH prices finished at $20,050 and $1,554, respectively, down 14.0% and 7.47% over the previous month.
Notably, the consequences of the market’s slowed speed and volatility were obvious in centralized exchange spot trading volumes, which increased 36.8% to $1.91 trillion in August.
A more volatile and uncertain market has made investors and traders more cautious, as seen by their investment habits and mindset during the previous month.
Binance, one of the world’s major cryptocurrency exchanges, earned 55.1% of the spot volume market share in August, according to a CryptoCompare analysis, as top-tier exchanges maintained their market domination.
Binance controls the majority of the market.
According to data, global spot trading volumes increased 36.8% in the latest month to $1.91 trillion as investors continued to profit from volatility. Top-tier exchange spot volumes grew 41.6% to $1.80 trillion, while lower-tier spot volumes fell 12.3% to $108 billion.
In reality, the top exchanges dominated the market, accounting for 94.3% of total spot volume. Since November 2017, top-tier exchanges have grabbed the most market share.
Binance continued to be the leading top-tier spot exchange by volume, with $438 billion traded, followed by Coinbase with $58.3 billion and AAX with $54.9 billion. Binance’s continued dominance shown increased retail crowd involvement over protracted bouts of volatility.
Is the Bitcoin market still plagued by uncertainty?
Despite the fact that BTC and ETH failed to break through their respective critical resistance levels of $24,500 and $2,000 in August, investors continued to rely on the leading exchanges in the face of uncertain macroeconomic conditions.
This volatility was mirrored in trading volume, which increased 36.8% to $1.91 trillion on controlled exchanges.
Bitcoin spot trade into USDT surged 15.4% in August to 10.1 million BTC, indicating that investors continue to favor safety in the face of uncertain macroeconomic conditions.