The sizzle of digital assets has fizzled out on centralized crypto exchanges (CEXs) as trading volumes dipped in April for the first time in three months.
According to Kaiko, a blockchain data provider, trading volumes on centralized exchanges have fallen after three consecutive months of gains.
The volumes in April were almost half of those in March, and Kaiko noted that volumes had reached pre-FTX collapse levels until the decline in April. Nevertheless, the crypto market remains more significant than before the 2020 bull run.
In April, legitimate centralized exchange spot volume took a 43.8% dip, settling at $400.5 billion, as reported by blockchain analyst Lars0x. The analyst also noted that the primary reason for the decline was Binance re-introducing fees on BTC pairs. Nonetheless, Binance still holds the top spot, dominating 71.6% of the market, as per the data.
According to CoinGecko, Binance’s 24-hour trading volume stands at approximately $10 billion, dwarfing its closest competitor, Coinbase, which has a trading volume of $1.14 billion.
Binance’s bitcoin balance ballooned by over 50,000 BTC in late April, equivalent to roughly $1.5 billion, in a single month, just before BTC faced tough resistance above the $30,000 mark and dropped. In the meantime, Coinbase’s application downloads have been decreasing as trading activity fizzles out in the sideways market.
As digital asset markets began to cool off from their 2023 highs in mid-April, the decline in CEX volume followed suit. On April 16, the total market capitalization reached an eleven-month high of $1.34 trillion, but the markets have since retreated by 10.4% to $1.20 trillion.
Since the markets had been somewhat overheated during the first quarter of the year, analysts have suggested that the current correction will likely persist.