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Cryptocurrency exchange Binance experienced a 23% slump in trading volume in September, reaching its lowest level since November 2023 at $344 billion. Other top exchanges like OKX, HTX, Coinbase, Kraken, and Bybit also reported significant drops, even as Bitcoin prices remained steady or were increasing. The reduction could be caused by global political tensions, the upcoming U.S. elections, or investors waiting for better trading conditions. Conversely, Crypto.com saw a considerable market share increase in Q3 and the report suggests a rise in popularity of decentralized exchanges.

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Binance, the world’s largest cryptocurrency exchange, saw a 23% decrease in trading volume in September, dropping to $344 billion – the lowest level since November 2023. And it wasn’t just Binance. Other top cryptocurrency exchanges like OKX, HTX, Coinbase, Kraken, and Bybit reported significant drops too.

The surprising bit? This happened when Bitcoin prices were going up or staying stable. There are multiple possible explanations for this drop – from increasing global political tensions and the U.S. elections, to investors taking a wait-and-see approach expecting a better time to trade.

On the other side, Bitcoin had a pretty good September in terms of popularity, even if the trading volumes didn’t reflect that. A report from Kaiko highlighted that Bitcoin had its best September ever this year, with returns of over 8.4%.

However, not all crypto exchanges were in the doldrums. Crypto.com saw a massive increase in its market share in the third quarter. It gained more than 50% market share among USD-compatible exchanges, and even managed to outperform Coinbase. In fact, it’s now the forth largest exchange by volume worldwide.

However, some believe Crypto.com is an exception, and it’s unclear whether it will sustain this upward trend. In general, Bitcoin’s dominance in the market has started to wane slightly, and alternative coins or ‘altcoins’ are seeing a boost. The US’ decision to cut interest rates recently could be a key contributing factor to this change.

There has also been a general rise in the popularity of decentralized exchanges (DEXs) compared to centralized ones. While more seasoned crypto traders prefer DEXs for their anonymity, security and competitive liquidity, newcomers find centralized exchanges easier to navigate.

Lastly, it’s also possible that traders are simply waiting it out for a year-end rally, expecting better trading opportunities. The trading volumes on centralized exchanges are also expected to increase in the last quarter of 2024, driven by catalysts like the Fed’s rate cut and the U.S. elections.

Source: Cointelegraph