According to data from Cryptocompare, cryptocurrency trading volumes experienced a sharp decline in June. The data collected by the price and volume tracking organization shows that crypto trading, in general, experienced a slump of at least 40%. Spot volumes suffered the most, with users trading 42.7% less compared to volumes in May. In total, $2.7 trillion was traded last month. The decline was mainly due to the mining and trading crackdown in China, amongst other factors.
— CryptoCompare (@CryptoCompare) July 13, 2021
Derivatives trading fell 40.7% month-on-month to $3.2 trillion.
Crypto derivatives trading also suffered a sharp decline. Trading fell 40.7% month-on-month to $3.2 trillion. According to analysts, this decline has to do with one key reason: the mining and cryptocurrency trading crackdown that happened in China last month. This caused crypto traders to be wary of the future of the market and precipitated the plunge in volume. Cryptocompare noted, “Headwinds continued as China persisted with its crackdown on bitcoin mining. As a result of both lower prices and volatility, spot volumes decreased.”
Crypto exchanges witnessed a lot less traffic in June.
Internet traffic to crypto exchanges also fell drastically. According to research from The Block, crypto exchanges got 369.1 million visits in June, a drop of 42.2% month-on-month. While one of the leading crypto exchanges, Binance, experienced a sharper trading volume drop of 56%, it managed to retain the top position in spot trading volumes. However, there might be other reasons why customers are avoiding Binance right now. Multiple organizations have been blocking payments to the exchange since last week. As reported earlier, Binance has halted withdrawals to its UK customers after receiving several warnings from financial regulators from different countries.