Cryptocurrency Trading Volumes Decline by 20% Amidst Tariff Uncertainties

Key Insights:

Trading volumes on centralized exchanges saw a 21% decrease last month, totaling $7.2 trillion.
The volume at CME (Chicago Mercantile Exchange) fell for the first time in five months, although it achieved a record market share.
Open interest on centralized exchanges has dropped to its lowest since November.

Market Reaction: Crypto trading volumes decreased significantly in February due to fears surrounding President Donald Trump’s tariffs on various countries, impacting investors’ willingness to engage in high-risk investments.

Data from CoinDesk Data’s latest Exchange Review reports that total trading volume across spot and derivatives fell by 21%, marking the lowest levels since October.

Furthermore, as the Trump administration has threatened tariffs on trading partners, including China and the EU, the impact on investor sentiment has become apparent. Among the top centralized exchanges, Binance continues to lead with a 27% market share but faced declining volumes as competition increased.

Derivatives Trading Trends:

CME, recognized as the top institutional trading platform, noted a 20% decrease in its trading volumes over the month. Despite this downturn, the market share among derivatives exchanges reached 4.67%, indicating sustained institutional interest even amidst declining retail activity.