Binance trading volumes spike 72% despite market decline

Bitcoin and Cryptocurrency Trading Volume

In April, the trading volume on major exchanges saw a mix of increases and decreases. While overall derivatives trading volume decreased slightly, Binance, the largest centralized exchange, experienced a significant uptick of over 72% in futures trading volumes compared to the previous month.

Reasons Behind Binance’s Trading Volume Surge

Wu Blockchain attributes Binance’s surge in trading volume to the introduction of a time-limited fee discount for USDC perpetual contracts. This promotion led to a rise in trading activity for perpetual agreements on the exchange. However, excluding this promotion, the total trading volume across all exchanges dropped by 26.6% in April. Notable declines were seen on exchanges like Bitget, Crypto.com, and HTX.

Impact of Market Decline on Spot Trading

In parallel to the futures market, spot trading volume also witnessed a decline in April, with Gate being the only exchange to show an increase in activity. Kucoin, Upbit, and Bitfinex were among the exchanges that saw significant decreases in spot trading volume. Binance’s trading fee discount for USDC-margined perpetual contracts further influenced the overall trading landscape during this period.

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